Chelsea had a £70 million bid turned down by the Seagulls on Monday, but are preparing an improved £80m offer plus add-ons, as per the Daily Mail.
Caicedo has generated plenty of interest from top English clubs after his impressive displays during the 2022-23 campaign helped his side finish sixth in the standings.
The talented midfielder started 34 top-flight matches, averaging 2.7 tackles, 1.5 interceptions and 0.7 clearances per game.
He also made two goal contributions and boasted an impressive 88.8 percent passing accuracy.
However, the Ecuador international is keen to take on a new challenge by moving to Chelsea.
Brighton are ready to let him leave this summer, but they want a whopping £100m transfer fee.
The 21-year-old has a contract until 2027, having penned a new deal in March.
He is undoubtedly one of the most exciting players in the Premier League, but the Blues are unlikely to meet the £100m valuation for him.
Brighton will likely agree to a fee of around £80m if Chelsea submit the bid.