The two clubs are keen on the Tottenham Hotspur defender.
Tottenham's DeAndre Yedlin in action
The defender is keen to leave Spurs this summer as he seeks first team football to help kick start his career.
He is unlikely to get that at White Hart Lane with Kyle Walker and Kieran Trippier both ahead of him in Mauricio Pochettino’s plans.
Chelsea's Cesar Azpilicueta in action with Sunderland's DeAndre Yedlin
The American spent last season on loan at Sunderland, where he flourished under the guidance of Sam Allardyce.
It had looked likely that he would return to the Stadium of Light on a permanent basis this summer, but so far a move has failed to materialise.
Sunderland's DeAndre Yedlin
The newspaper reports that both clubs have made offers in the region of £3.5 million and Spurs are willing to sell the 23-year-old.
It is unknown if they are willing to sell at that price though, with them sure to want the best price possible for the full back.
Sunderland's DeAndre Yedlin celebrates with Patrick van Aanholt after the game