Loftus-Cheek has made over 80 appearances so far for the Blues, but has at best been an infrequent starter for the London club.
His time at Stamford Bridge has been hampered by injuries and he was loaned out last season to cross-town rivals Fulham.
He made 30 appearances in the Premier League as the Cottages were relegated and is now of interest to Ralph Hasenhuttl’s Southampton.
However, in what may be a blow to the Saints’ hopes of landing him, Chelsea are looking into a Bundesliga loan for Loftus-Cheek.
They believe that playing in Germany could help him to get his career back on track and also prepare him to return to Stamford Bridge or put him in the shop window for a sale.
Loftus-Cheek has also been linked with Italian side Lazio, where former Chelsea boss Maurizio Sarri is now in charge.
The midfielder’s contract at Stamford Bridge runs until the end of the 2023/24 season and it remains to be seen if Southampton can take him to the south coast.