The Gunners have offered the 24-year-old a new contract to stay at the Emirates, yet Antonio Conte’s side are believed to have grown increasingly confident about completing a deal before the transfer window shuts.
Oxlade-Chamberlain is said to want to move from Arsenal to seek a fresh start elsewhere, with Chelsea wanting to sign the player for £35million.
Although the ex-Southampton man wants to play in midfield, Smith has said that Chelsea could utilise the player at wing-back due to their limited options in that position.
Smith, speaking on talkSPORT this morning, said: “He wants to play in the middle, so that’s probably the nub of the problem at Arsenal.
“He’s been playing wing-back and only occasionally in the middle, but Arsenal have got plenty of players for those central spots – Xhaka, Ramsey, Elneny – so there won’t be too many occasions that he’d play there.
“But if he were to go to Chelsea, who knows? He could end up playing wing-back there too.
“It’s his versatility that makes him an attractive signing, that’s why Chelsea want him, that and he’s young and he’s very talented.”