The Chelsea manager has seen his side emerge as genuine title contenders thus far this season, with veteran forward Gianfranco Zola in sensational form, and is believed to be monitoring Lazio's financial crisis intently.
Rumours in Rome indicate that the biancoceleste may be forced to off-load players in the New Year, in a bid to clear some of their debts, and Pancaro and Favalli have both been the subject of attention from the ex-Valencia boss.
As previously reported, the Lazio defenders have caught the eye of Ranieri, but all he would tell the Italian media was that the two are "interesting" performers.
Pancaro (pictured), a strapping centre back, is under contract until 2005, but could be made available during the transfer window.
After representing Cagliari with distinction, the 31-year-old has a reputation as a reliable and dogged defender.
Meanwhile, Favalli is a 30-year-old stopper who was signed from Cremonese back in 1992/93.
Ranieri has plenty of centre backs at his disposal, including Marcel Desailly, William Gallas, John Terry and Robert Huth, but may be willing to snap up any bargains that become available in order to increase competition for places at Stamford Bridge.
