Birmingham City have also joined the chase but the London club remain clear favourites to land the former England international.
The two clubs still have to reach a compromise over the transfer fee because Chelsea only wish to pay half of Leeds' current £1m valuation.
Graham said: "Hopefully, it will happen in the next few days – although Chelsea (who are chasing Christian Vieri and Juan Sebastian Veron) have other priorities at the moment."
Martyn's imminent departure was reflected in the club's new squad numbers published yesterday. The 36-year old has finally lost the No 1 shirt to Paul Robinson and been demoted to No 15.
As one of the most experienced players in the Leeds United squad, Martyn has brought much to The Whites since his £2.25m move from Crystal Palace back in 1996.
Having played over 250 games in a Leeds shirt, he has proved his worth and has collected 23 international caps for his country.
He has a wealth of experience and has clearly been one of the key figures in the success and development of Robinson.