The Clarets have the option to extend the former Leicester star's terms in the winter transfer window, but are unlikely to exercise this option.
Chelsea would demand Burnley cover Drinkwater's full £120,000 a week contract, and Sean Dyche's men are instead believed to be looking for alternatives.
Drinkwater has struggled to force himself into Dyche's first-team plans, and may now be forced to battle for his long-term future at Stamford Bridge once again.
The former England international has featured just once for the Turf Moor outfit, after being handed a rare appearance against Sunderland in the Carabao Cup.
He had also been controversially sidelined after being attacked outside a nightclub in September, and Drinkwater had suffered ankle ligament damage
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