The 49-year-old broadcaster is reportedly set to form part of a three-person presenting team on the iconic BBC programme alongside Mark Chapman and Gabby Logan once Gary Lineker steps down at the end of this season.
According to the Daily Mail newspaper, Kelly – the daughter of Liverpool legend Sir Kenny Dalglish – was the BBC's leading external candidate to replace Lineker.
Cates has worked for the BBC on Radio 5 Live since 2013, previously hosting the fan phone-in show 606 with Ian Wright, although her role was reduced somewhat when she joined Sky Sports to present coverage of Premier League matches.
Kelly, Gabby and Mark are set to share hosting duties on 'Match of the Day' and 'Match of the Day 2' from next season. The latter pair have worked at the BBC for several years and have both stood in for Lineker on the flagship show previously.
Gary announced last month that he was stepping down from the programme after 25 years as host and declared that it was the "right time" to leave as he said the BBC were planning to do the show "slightly differently" in the future.
Speaking on his 'The Rest Is Football' podcast, the 64-year-old star said: "I feel this is now the right time.
"I think (with) the next highlights contract, they're looking to do 'Match of the Day' slightly differently, so I think it makes sense for someone else to take the helm."
Lineker admits that he found the reaction to his departure a "bit bonkers".
He said: "It's been a bit bonkers and a bit mad. But I didn't think it would be quite the big deal that it was because it's just a guy that's done a TV show for a long time. It's nothing more than that really."