Midfielder Dowell, 21, is set to leave Goodison Park in the January transfer window. on a temporary basis, having been limited to just two Carabao Cup appearances this term.
Gers manager Steven Gerrard was among the onlookers as Dowell scored England under-21s’ second goal in their 2-0 win against Scotland at Tynecastle in October.
Gerrard likely sees Dowell as an ideal replacement for fellow attacking midfielder Ovie Ejaria, whose season-long loan from Liverpool was terminated last week.
But it seems Dowell, who spoke last month of his frustration at his lack of first team opportunities, is intent on playing his football in England, rather than moving to Scotland with Rangers.
Dowell scored 10 goals in 43 appearances for Nottingham Forest during his loan spell at the Championship club last season, but received less game time in the second half of the season under new boss Aitor Karanka.
This season he has only featured for the senior side in three games this season - two underwhelming Carabao Cup performances and a friendly stroll in the park against Kenyan champions Gor Mahia in early November.
Nikola Vlasic’s continued success out on loan at CSKA Moscow, especially on the Champions League stage, has only served to increase the pressure on Dowell to perform, as have rumours that the Blues are looking Austrian youngster Hannes Wolf who plays the same position as well out on the wing.