The 18-year-old has emerged as a surprise target for the reigning German champions in the January transfer window despite his lack of first-team experience.
Hudson-Odoi has only made one Premier League appearance after the teenager replaced Willian in a 2-1 win against Watford at Vicarage Road on Boxing Day.
Maurizio Sarri played Hudson-Odoi in three Europa League games in the group stage and the promising forward scored in a 4-0 home win over PAOK.
Hudson-Odoi started to be linked with a move to Bayern Munich earlier this month before the 18-year-old completed 90 minutes of their 2-0 win over Championship side Nottingham Forest in the FA Cup third round.
The Chelsea FC talent made two assists in the FA Cup win at Stamford Bridge to help the west London side book their place in the next round.
A report on Tuesday claimed that Bayern are prepared to offer £35m to sign the teenager despite his limited experience in the Chelsea FC team.
Former Arsenal midfielder Merson, who is a self-confessed Chelsea FC supporter, offered Hudson-Odoi with some advice about his future at Stamford Bridge.
“He’s got great potential, it’s all right having potential but you have to then go on and do it,” Merson told The Debate on Sky Sports on Monday night.
“A lot of people have potential, but get in and don’t produce.
“If I was his agent, I’d be sitting down with him and saying be patient, stay at Chelsea. Give it a while, you’re a young kid.
“Bayern are an ageing football team, they’re only going one way.
“I don’t think they’re going to be the dominant team they were, they’ve got a lot of older players in the team now,
“And when they change it around, there’ll be a lot of pressure on him – you won’t be playing with your Riberys and your Mullers, he’d be expected to pull up trees.
“He’s a young kid, playing behind top-drawer players at the moment. He’s not at a mid-table club thinking ‘why am I not playing?’ it’s Willian, Pedro, proper players.
“You can only learn from them. The manager’s said that he wants him to stay, and there’s a position there. Pedro might be on his way, who knows next season.”
Chelsea FC are in fourth place in the Premier League table ahead of their home clash against Newcastle United at Stamford Bridge on Saturday evening.
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