The English club have turned their attention to the Ghanaian following repeated failed bids for Southampton 19-year-old winger Tyler Dibling.
According to reports, the Toffees had previously attempted to sign Fatawu before he joined Leicester City from Portuguese giants Sporting, however, the deal fell through.
The 21-year-old struggled with an ACL injury during the 2024/25 Premier League campaign which saw the Foxes relegated from the Premier League.
He had initially signed for Leicester on a loan deal and impressed during his first season, scoring six goals and providing six assists to help the club gain promotion following the 2023/24 season.
Fatawu was rewarded with a five year permanent deal and is thought to be an important player in the Foxes ambitions to regain promotion from the Championship this season.
The player is reportedly happy to stay with Leicester City this season but the club may be swayed by a big offer from a Premier League side.
Manchester City ended their five-match winless run away from home in the UEFA Champions League with a commanding 2-0 victory over Villarreal, becoming the first side to win at the Estadio de la Ceramica since Real Madrid in March.
Chelsea have grappled with a disciplinary headache lately, collecting five red cards across their past six outings in all competitions, a tally that includes head coach Enzo Maresca's own dismissal.
Eddie Howe has urged Newcastle United supporters to recreate another "electric atmosphere" at St James' Park as the Magpies prepare to face Benfica in the Champions League on Tuesday night.
Chelsea manager Enzo Maresca has praised teenage winger Estevao Willian, comparing the Brazilian's maturity and intelligence on the ball to that of Cole Palmer.
