The four-time MVP quarterback was officially released by the Colts on Wednesday and is one of the top free agents of all time at his position.
The Chiefs seem to be looking for an upgrade over current starting QB Matt Cassel for next season.
Here are five reasons why the red and gold should land the future Hall of Fame signal-caller.
Any way you look at it, the Chiefs currently have an arsenal of offensive weapons that any quarterback would like to have at his personal disposal to use.
In the passing game, they have Pro Bowl wideout Dwayne Bowe to go along with the reliable Steve Breaston and 6'5" Jonathan Baldwin to go along with a talented tight end in second-year man Tony Moeaki.
Kansas City's ground attack isn't bad either considering they have Pro Bowl RB Jamaal Charles and were ranked first in the league back in 2010.
It's true that any offense would automatically become better with Peyton Manning behind center, but KC would be able to provide him with offensive firepower that he wouldn't have if he went elsewhere.
Any NFL quarterback would love to have a great defense that could play behind them.
Fortunately for Manning, that's exactly what the Chiefs have right now.
With Pro Bowl linebackers Derrick Johnson and Tamba Hali as well as all-everything safety Eric Berry returning next season, this defense has a chance to be one of the top five units in the league in 2012.
There's no question that, if this defense had a QB like Peyton Manning to play behind, they would play much better in the end.
Last season, the AFC West was easily one of the worst divisions in the NFL.
The Broncos won the division with an 8-8 record which speaks volumes for how weak it was a season ago.
If Peyton wants to have the best chance to get back to the playoffs next season, Kansas City is where he should go.
Even though they missed the playoffs with a 7-9 record last season, the Chiefs are clearly built to win immediately.
The only thing that has been holding them back is the quarterback position.
Matt Cassel doesn't appear to be the guy who will take this franchise to the promise land.
With many talented playmakers on both offense and defense, adding Peyton Manning would instantly make Kansas City Super Bowl contenders.
According to the Kansas City Star, the Chiefs have about $37 million in cap room right now.
This obviously gives them an ample amount of money to spend on a player like Peyton Manning.
Compared to Manning's other suitors, KC not only compares favorably, but also looks to be in the best shape to sign the former Colts star.
Since Manning could command around $20 million a year, it's a big advantage that the Chiefs have some flexibility with their current cap space.