Bailey has scored fives goals in 14 Bundesliga appearances this season and has also attracted interest from league champions Bayern Munich, though The Express report Leverkusen would prefer a Premier League suitor.
Liverpool, Manchester United and Arsenal are said to be in the hunt alongside Chelsea, who were particularly impressed with the 22-year-old's performance against Rangers in the UEFA Europa League last week.
Leverkusen defeated Steven Gerrard's men 3-1 in the first leg of their round of 16 tie, and it was Bailey who grabbed the final goal at the Ibrox.
With Willian's current contract at Stamford Bridge set to expire at the end of the season, the Blues have identified Bailey as the ideal long-term replacement on the wing.
Having first burst onto the scene at Belgium outfit Genk, Bailey signed with Leverkusen for £18 million (A$36 million) in 2017 and has since gone on to make over 100 appearances for the club.
