The 19-year-old is seen as one of the hottest prospects in South America and has already caught the attention of several high-profile clubs.
La Gazzetta dello Sport claims that Inter, Fiorentina and Napoli are all closely following the talented striker.
Universidad Catolica value the player at €10 million, but there is every chance he can be acquired for lot less.
Nicolas Castillo made his first team debut in April 2011, and scored a brace in the Copa Chile against Colo Colo just a couple of months later.
He has netted six times in 20 league appearances this season, despite starting just 10 of those games.
Castillo was even called to the senior national team once, but has yet to win his first Chile cap.