The former Blues winger believes the Arsenal contract rebel would be an ideal signing for the Stamford Bridge outfit following an impressive start to the season
The 23-year-old will be a free agent in the summer should he fail to agree new terms with the Gunners before the end of the season.
And Walker, who made over 150 appearances for the west London side, has earmarked the England international as a potential target.
He told talkSPORT: “We all know that with Chelsea being the team that they are, and the money they’ve got available to them at the moment, any player that becomes available around the world is going to be on their priority list.
“Theo Walcott, if he is available, certainly would be someone who could slot into the side because his position is open to someone in his style.
“We’ve been talking about him for two or three years now about him being the finished article and I think he’s getting closer to it.
“Sometimes we give players a certain amount of criticism when they’re young and then we suddenly realise they’re three or four years older, more mature and they’re suddenly doing it.
“We’re already talking about Theo being more of a goalscorer now, putting the ball in the back of the net. We’re seeing a more mature player but whether he’s there yet or not, I probably doubt it.
“I still think he’s got another two, three or four years to go yet before he gets to the fully mature player he’s got the capability of being.”