BBC Sport are reporting that manager Roberto Di Matteo has been sacked after just six months in the job.
Di Matteo won the Champions League and FA Cup as caretaker manager last season and was given a two-year deal in June.
BBC are reporting that Chelsea owner Roman Abramovich has made contact with former Liverpool manager Rafael Benítez to gauge his interest in taking charge at Chelsea on a short-term basis - and that he made contact with Benitez even before the defeat in Italy as he assessed his options.
"The club will be making an announcement shortly regarding a new first-team manager," a statement said.
A list of Chelsea managers under Roman Abramovich
Claudio Ranieri : Sep 2000 to May 2004
Jose Mourinho : Jun 2004 to Sep 2007
Avram Grant : Sep 2007 to May 2008
Luiz Felipe Scolari : Jul 2008 to Feb 2009
Guus Hiddink : Feb 2009 to May 2009
Carlo Ancelotti : Jun 2009 to May 2011
Andre Villas-Boas : Jun 2011 to Mar 2012
Roberto di Matteo : Mar 2012 to Nov 2012