The chip would assist about one million people in the UK with age-related macular degeneration or retinitis pigmentosa.
'Recognise faces'
Dr Mathieson said: "Advances in microelectronics have allowed us to develop a small device to be implanted on the retina itself.
"The device would contain an imaging detector.
"If light forms an image on the detector, then the result will be electrical stimulation of the retina in the shape of this image.
"The stimulated cells then send the information via the optic nerve to the brain."
The implant prototype has 100 pixels but the team hope that number will increase significantly as their work progresses.
Dr Mathieson, said: "Around 500 pixels would allow people to walk down the street and recognise faces.
"Beyond where we are today it might be possible to make smart chips which have memory in them which would allow action replay and slow motion."
Dr Mathieson, from the University of Glasgow's department of physics, is working on the project with Dr James D Morrison from the neuroscience and biomedical systems department.