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The Melrose Place star is the front-runner in a list of potential actresses to replace Megan Fox as Shia LaBeouf's love interest in the sequel, reports Showbiz Spy.
"[Director] Michael [Bay] worked with Katie on A Nightmare On Elm Street and he sees her as the perfect choice," said a source.
The insider added: "Megan was unknown when she was cast in the first Transformers and Katie is in that same mould. She even looks a little like Megan - only blonde."
It was reported on Thursday that Gemma Arterton was being lined up to replace Fox.
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