Boss Pep Guardiola wanted the Brazilian when he was in charge of Barcelona.
Now having moved to European champions Bayern Guardiola is ready to pounce.
He put out feelers for the defender while Luiz was starring for the Brazil side that won the Confederations Cup last month.
The 26-year-old has returned for pre-season with Chelsea under new Stamford Bridge boss Jose Mourinho and Guardiola is back on his trail.
Bayern were beaten 4-2 by arch-rivals Borussia Dortmund in the German Super Cup on Saturday.
An insider revealed: “The performance exposed some weaknesses that Pep believes could be sorted out by bringing in Luiz.”
SunSport understands that Bayern are looking at offering a package that could rise to £45m including bonuses.
That would represent a whacking profit for Chelsea who only paid £21m to Benfica for the player two years ago.
There have been rumours all summer that Mourinho has his reservations about Luiz fitting into his system.
And though Mourinho has insisted the Brazilian is staying he has pointedly made reference to the fact he feels Luiz needs to improve his decision making when he is on the ball.
Chelsea sources claim Luiz is not for sale but the player himself has been unsettled by stories which have constantly linked him with a move.