The Croatian international is seen as the ideal man to shore up the Blues’ defence by manager Rafael Benitez, in the wake of some poor Premier League performances.
After failing to secure reported deals for Mapou Yanga-Mbwia and Stefan De Vrij, the Londoners have highlighted the 23-year-old as a January target.
Due to Lyon suffering with financial difficulties, Lovren represents a cost-effective alternative, with his value likely to be just over £6m.
At 6ft. 5” he certainly has the physical presence to cope with the rigours of English football, and couples his size with admirable agility and pace.
If the transfer does materialise, it would likely spell the end of David Luiz’s period at Stamford Bridge.
The Brazilian centre-back has struggled to adapt sufficiently to the Premier League since his 2011 arrival from Benfica.
The Portuguese giants are rumoured to be interested in resigning their former crowd favourite, but they may face competition from Russian outfit CSKA Moscow and Barcelona.
There is also speculation that Luiz may be converted to a holding midfield role under Benitez, after he was deployed in the position during the FIFA Club World Cup.