According to Brazilian outlet Lancenet, there's a race between big clubs to sign Paulinho away from Tottenham Hotspur, and Chelsea is winning. They say that AC Milan and Real Madrid are also in the running, but that Chelsea is the most likely destination and that a deal will be announced after the World Cup.
Here's the original Portuguese, which Google Translate sort of garbles.
Com a concorrência de Real Madrid e Milan, o Chelsea está perto de obter preferência na contratação do volante Paulinho, do Tottenham. O acordo, que deve ser anunciado após a Copa, é negociado pelo agente Giuliano Bertolucci, que já atuou na ida de David Luiz, Ramires e Oscar para o Chelsea.
If Paulinho is indeed for sale and Daniel Levy doesn't care about letting him go to a Premier League side, this makes perfect sense. Chelsea are going to spend more for a midfielder this summer than Real Madrid or AC Milan, and I'm sure Paulinho would love to go play with his national team buddies.
But I can't speak for the reliability of Lancenet, nor do I think Levy's over Chelsea's attempts to poach Modric. This is still quite batcountryish, even if I think it's somewhat plausible.