According to a report from Team Talk, the 25-year-old midfielder is not part of Chelsea's future plans, and as a result, he could be set for a permanent transfer out of the club in the summer.
Loftus-Cheek has been fairly inconsistent with Fulham, who are struggling for consistency in order to stay up in the Premier League and avoid relegation.
However, Aston Villa are not the only Premier League side that are interested in signing Loftus-Cheek, with Crystal Palace also interested in him, and it will be interesting to see the manner in which the situation pans out.
Crystal Palace have already started talks with Chelsea, and the Blues have told them that they are open to sell him in the summer.
Given Fulham's unsecure position in the Premier League, it would be a difficult ask for them to keep Loftus-Cheek for more than the current season, but if they manage to stay up, they could be a good destination for him.
Aston Villa need more depth in midfield, and signing Loftus-Cheek could prove to be a brilliant signing, especially if they are not able to make the signing of Ross Barkley from Chelsea permanent.
Barkley has been fantastic for Villa this season, and signing Loftus-Cheek could be a good replacement for him, with both being box-to-box midfielders that could add a new dimension to the way that Dean Smith's side operates.
However, Villa need to fend off competition, and with Palace needed some freshening up in central midfield, a price way for Loftus-Cheek could be set to start this summer.
Loftus-Cheek has played in 28 games in all competitions for Fulham this season, scoring just one goal, whilst operating in a number of positions, from up front, to attacking midfield, and sometimes on the right-wing.