The Frenchman is set to be offered a salary of £5.5m per year if he decides to make the move, according to the Daily Mirror.
Shanghai are prepared to bid £11m for the 29-year-old who is down the pecking order at Stamford Bridge with Diego Costa and Alexandre Pato preferred.
The Chinese side signed Blues legend Didier Drogba four years ago and another former Chelsea man, Demba Ba, currently plays for them.