It’s believed that the Blues have been tracking the England international for some time, and with his contract set to expire at the end of the season they could make a move once the transfer window opens.
Arsenal will be far from keen to sell one of their star names to a direct Premier League rival, but they’ll be aware that he could leave for free next summer.
Despite reports that manager Arsene Wenger is keen to retain the services of Walcott, his contract situation continues to go unresolved.
The winger is reportedly keen to increase his weekly wage to a figure in the region of £100,000-per-week, but the North Londoners are unwilling to meet that figure.
Even though the Stamford Bridge club have a wealth of attacking midfield options, Di Matteo is still believed to be keen on the 23-year-old and may even utilise him in his preferred central position if a deal can be done.
With Daniel Sturridge frustrated by a lack of action and looking to move on according to some reports, the West London club are short on striking alternatives.
Chelsea would face competition from Liverpool for his signature, with Reds boss Brendan Rodgers said to be an admirer of the ex-Southampton man.