BLUE BOY: Filipe Luis is closing in on a switch to Chelsea [GETTY]
The Blues have agreed to activate Luis' £20m release clause and will now discuss personal terms with him over a switch to Stamford Bridge.
It is also understood the Brazilian has already undergone a medical ahead of the switch Chelsea, where he will team-up with former Atletico colleague Diego Costa.
"Chelsea Football Club can confirm an agreement has been reached with Atletico Madrid for the transfer of Filipe Luis," a club statement confirmed.
"The move is subject to the 28-year-old left-back agreeing personal terms."
Chelsea boss Jose Mourinho has been desperate to secure the 28-year-old's signature after releasing veteran left-back Ashley Cole, who has since joined Roma on a free transfer, at the end of last season.
The naturally right-sided Cesar Azpilicueta was preferred over Cole at left-back by Mourinho during the last campaign.
But the arrival of Luis could see Azpilicueta shifted over to the right-back slot, currently occupied by Branislav Ivanovic.
Luis made 48 appearances during the 2013/14 season as Atletico won their first La Liga title in 18 years as well as reach the Champions League final only to be defeated by city rivals Real Madrid.
The signing of Luis would be Mourinho's fourth of the summer following the arrivals of Costa, Cesc Fabregas and Mario Pasalic.
Mourinho is also expected to tie up a deal to re-sign Portuguese midfielder Tiago - who left Chelsea in 2005 - from Atletico.
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