The 23-year-old has one year left on his contract at the Emirates and is yet to sign a new deal with the north London club. According to the Mirror, the player is frustrated with lack of progress in the contract negotiations.
Arsene Wenger's future was resolved after the end of the last season and the Frenchman was handed a two-year extension following their FA Cup success. The Gunners have started talks with Oxlade-Chamberlain over a new deal. However, they are yet to make a formal offer for the England international.
The situation has alerted the Premier League winners and the Blues are ready to take advantage of Oxlade-Chamberlain's situation at Arsenal. Last October, the versatile Arsenal star admitted that he would consider his future after the end of the 2016/17 season. One of the main reasons for his frustration was lack of playing time under Wenger.
However, things improved for Oxlade-Chamberlain after the Arsenal manager changed his formation to a three-man defence. He was deployed as a wing-back and impressed in both right wing-back and left wing-back positions.
Chelsea manager Antonio Conte also prefers a three-man defence and should they sign Oxlade-Chamberlain, he would strengthen their wing-back position for the new season. Any move from the Stamford Bridge for the Gunners star will see them face competition from their league rivals.
Liverpool and Pep Guardiola's Manchester City are also in the race for his signature, reports the Mirror. The English champions have now joined the race with the Reds and the Etihad outfit for Oxlade-Chamberlain.
According to Sky Sports, the talks over a new deal have stalled. Oxlade-Chamberlain is currently on holiday and is considering his options before deciding his next move.