Chelsea are expecting Andreas Christensen to leave on a free transfer at the end of the campaign, Sky Germany reports.
The centre-back has just four months remaining on his contract, and talks over a renewal have reached a standstill.
It is now reported that the Blues are braced for his departure when his contract expires following the current season.
Barcelona were previously leading the hunt to sign him, but Bayern Munich have now emerged as strong rivals.
The Bavarian giants are expected to lose Niklas Sule to Borussia Dortmund when his contract expires on June 30.
They have identified Christensen as the ideal replacement, and are prepared to assure him with regular game time.
Christensen has regularly played in a back three under Thomas Tuchel. Bayern have recently used a similar system.
Julen Nagelsmann rates him highly, particularly after his impressive two-year loan stint at Borussia Monchengladbach.
Both Barcelona and Bayern have already made contact, but Christensen may delay his decision until the end of the season.