Fulham have been negotiating with the Blues over a move for the 22-year-old.
But the Premier League giants’ £8 million fee demands are unacceptable for the Cottagers.
And now The Times reporter Tom Roddy reveals the Londoners have pulled out of the race for the England international.
That has given a huge boost to Everton who have recently entered the race for the player.
The Toffees are expected to lose Demarai Gray to Saudi Pro League side Al-Shabab, with the Jamaica international not regarded as a key player by manager Sean Dyche. But they are still unwilling to sanction a move without bringing in a replacement first.
Dyche is already dealing with injuries to several forward players, including Dwight McNeil, Alex Iwobi and Jack Harrison.
Their lack of quality in attack was on display in their first two games against Fulham and Aston Villa when they failed to score any but conceded five goals combined.
The English boss will be under huge pressure before their home game with Wolverhampton Wanderers, available to watch via Everton live streams.
Dyche will be hoping to wrap a deal for Hudson-Odoi soon to give them a boost for their 2023-24 campaign.
The 22-year-old is an academy product of Chelsea who has played 126 matches in all competitions for the club.
He showed great promise early in his career but fell down the pecking order at Stamford Bridge after sustaining an injury in March last year.
The winger didn’t play again for the remainder of the season before going on loan to Bayer Leverkusen for the 2022-23 campaign.
But he also failed to impress in Germany, finding the net only once in 21 games across all competitions.
However, Hudson-Odoi is still very young and has a lot of room for improvement. He has plenty of potential and with confidence restored, he could be a big hit at Goodison Park.
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