Currently on-loan with Huddersfield Town, the attacker is attracting interest across the country.
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The Sun says Chelsea hope to raise £1m from Castledine's sale in January.
Castledine has scored 10 goals and provided two assists in 27 League One games for Huddersfield.
Watford are among several Championship clubs keen on Castledine, with Chelsea ready to sell. The Blues have the option to recall the youngster from the Terriers this month before selling him.
