The 18-year-old made his debut for his club Universidad Catolica earlier this year, but he has been spotted by Bolton scouts.
Now Catolica have agreed to let Magnasco travel to England after he signed his first contract with the club ensuring they would be due a good fee if he does enough to earn a move.
Magnasco, who can play anywhere down the right side, had also been linked with other English clubs including Chelsea, but he is looking forward to trying his luck with Bolton.
"I have to seize this chance, and if I am not ready they will tell me," he told Chilean radio Bio Bio.
"It never hurts to take advantage of this situation."
Some reports claim that Magnasco would be able to move for minimal compensation, but he confirmed that he had actually signed a contract with Catolica before leaving for England.
"Everything is done with the club, I signed a contract with the club to keep everybody happy, and everybody is happy," he said.
"The idea was to get on well with them and then hopefully everything will work out."