Chelsea would need to find another club for Falcao if they are to terminate the loan agreement with Monaco.
Falcao is currently sidelined through a muscular injury but has had yet another trying season in English football having only found the net on one occasion this season.
In his defence he has often been used off the bench and never been first choice but it follows a poor season he had on loan at Manchester United last season from Monaco where he only managed to find the net on four occasions.
ESPN's report says that Chelsea are looking to terminate Falcao's loan from Monaco in order to bring in another striker in January, but it would mean they would have to find another club for the 29-year-old to take him on for the rest of the season. So far none have been forthcoming.
Evidently the Colombian forward has not been the same player since suffering a serious knee injury in the 2013/14 season as he has failed to find his best form in English football, where previously he had been a lethal marksman at both Porto and Atletico Madrid.
Chelsea are desperate for some fresh impetus up front having struggled at the start of this season, meaning they sit in 14th place in the Premier League - only finding the net on 17 occasions in the league so far this season.
Falcao, sadly, hasn't shown signs that he can be the kind of striker to start regularly finding the net in his cameo performances and his stock has fallen considerably. It was a bold move for Jose Mourinho to take him on but thus far it hasn't worked out. If he is forced to remain at Chelsea for the second half of the season then who knows? Something may just click for him.