The defending Premier League champions suffered a shock 3-0 loss to Bournemouth in the Premier League at Stamford Bridge on Wednesday night.
The Blues have made a disappointing start to the calendar year following a 2-1 aggregate loss to Arsenal in the League Cup semi-final.
Chelsea FC required 180 minutes and a penalty shootout to beat Championship side Norwich City in the FA Cup third round.
The west London side have only managed to win one of their last four games in the Premier League to see Antonio Conte’s men drop down to fourth place.
Indeed, Tottenham Hotspur are only two points adrift of Chelsea FC after Spurs were impressive 2-0 winners against Manchester United at Wembley mid-week.
Former Arsenal midfielder Merson believes Chelsea FC could miss out on a Champions League place unless there is a dramatic change at Stamford Bridge.
“Chelsea are the ones in danger of slipping out of the top four,” Merson told Sky Sports.
“There seems to be a lot going on off the field at Stamford Bridge at the moment and that doesn’t help things.
“After the result on Wednesday, it’s all about the top four for Chelsea. They’ve got to get into the top four but if they don’t pick up quickly they could drop out of the running quite quickly.”
Chelsea FC signed England international Ross Barkley in a £15m deal from Premier League rivals Everton last month.
The Blues snapped up AS Roma defender Emerson Palmieri and Arsenal striker Olivier Giroud in the final week of the January transfer window.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news