Connor Gallagher will fly to Spain on Monday to join Atletico Madrid.
Chelsea accepted a £34m contract from the La Liga club last week but were unable to agree terms with the player on a new deal to keep him at Stamford Bridge.
The decision was made in the early hours of Monday morning.
Gallagher will engage in further negotiations with Atletico to finalize personal terms and, if all goes well, will undergo a medical.
The England international has been told he will only be a player under Enzo Maresca, with the new Blues boss preferring Chelsea’s possession-based style.
Chelsea accepted a higher offer from Aston Villa for Gallagher this summer, but he decided to reject a move to Villa Park and stay at Stamford Bridge. Spurs remain interested in Gallagher.
Chelsea would prefer to sell him to a club abroad rather than a Premier League rival.
Blues keen on Celtic’s O’Reilly as potential Gallagher replacement
Chelsea are assessing potential replacements if Connor Gallagher leaves the club.
sky sports news One of the few options they know they’re keen on is Celtics’ Matt O’Reilly.
O’Reilly has been the subject of bids from Atalanta this summer, with other clubs from the Premier League and abroad also interested.
Atletico Madrid made an offer for O’Reilly in January.
When does the summer transfer window open and close?
this 2024 summer transfer window The Premier League will officially end at 11pm UK time on August 30, and the Scottish League will officially end at 11:30pm.
The Premier League has brought forward its deadline to link up with other major European leagues. The deadline was determined following discussions with leagues in England, Germany, Italy, Spain and France.