The Claret and Blue have been heavily linked with a move for another Blues midfielder, Shaun Wright-Phillips, but it has emerged that Cole is the main target.
The tricky midfielder may struggle for first team football at Stamford Bridge this season, as Luis Scolari has already announced his intentions to get the best out of Florent Malouda.
Scolari wants Malouda to play on the left wing during this campaign as he feels the midfielder was wasted under previous managers.
Cole, who often occupies that position, will not want to lose his first team role because it would risk his chances of England selection.
The former West Ham man could find his place in Fabio Capello's squad threatened by Ashley Young if the Villa winger has another brilliant campaign.
But, if Cole opts to make a move to the Midlands, the adaptable Young would take up role wide on the right.
That would free up Cole to play in his preferred position and he would be surrounded by a plethora of English talent.
Capello is likely to be a frequent visitor to Villa Park, meaning Cole would get plenty of chance to show the Italian his mettle.
It could be a good move for the Blues star and it could prove to be a good bit of business for the Claret and Blue.