The Blues and the Reds were unable to land Huijsen from AFC Bournemouth with the Spain international joining Real Madrid instead.
Chelsea and Liverpool are already turning their attentions towards alternative options and are now in a three-way fight to recruit Araujo.
The 23-year-old is wanted by both English clubs as well as French champions Paris Saint-Germain ahead of the summer transfer window, Foot Mercato have reported
Araujo, who earned his first international cap for Portugal last year, is believed to have a €80m (£67m) release clause in his Benfica contract.
He has been dubbed a ‘technical maestro’ and an ‘elite player’ by football scouts on X, who have highlighted Araujo’s turns, dribbling, passing, speed, build-up impact and ability to win duels as some of his biggest strengths.
Araujo came through Benfica’s academy and has established himself as a important star, playing a total of 67 first-team games for the club to date.
Araujo helped Benfica land the Taça da Liga (Portuguese League Cup) this season and could now be heading to a bigger European team this summer.
He also shined in the academy before his breakthrough, winning the 2022 UEFA Youth League and being named in the Team of the Tournament.
PSG appear to be the frontrunners to land Araujo at this moment in time having initiated talks to sign him last summer.
The Ligue 1 didn’t end up completing a deal for Araujo but he is still high up on their wishlist for the upcoming summer window.
Liverpool and Chelsea are yet to make an offer to sign Araujo but they are thought to be watching his situation closely ahead of a possible swoop.
Chelsea are also looking at other defensive options if they miss out on Araujo to either Liverpool or PSG.