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Alvaro Morata[/caption]
With Real Madrid, the 20-time capped Morata won two UEFA Champions League titles and two Spanish league crowns.
Both clubs said that the deal is subject to passing the medical examination and personal terms with the player.
"Real Madrid C.F. and Chelsea FC have reached an agreement regarding the transfer of Álvaro Morata, subject to the player completing his medical," the clubs said in a statement on Thursday.
The Spanish striker who has been reportedly valued at £67 million ($86 million) for the move was thanked by the Champions League title holders for his service for the club.
"The club wishes to express its thanks for the dedication, professionalism and exemplary conduct displayed by the player over the years, spanning his time in our academy right through to his spell as a member of the first-team squad," the club said.
The city-born Morata signed for Real Madrid in 2008 from neighbouring club Getafe C.F.
The 24-year-old has won two La Liga, Copa del Rey, UEFA Champions League title each in his five year career with the club.
Morata was also member of reigning Italian champions Juventus from 2014 to 2016. Having made 63 appearances and scored 15 goals during his time with the club, he won the Serie A, Coppa Italia title twice each and Supercoppa Italiana title once.
The Spain international has also won the UEFA European U-19 and U-21 championship with the youth teams before making 20 appearances since 2014 in his senior career.
Guardiola hopes for more deals, Aguero to stay at Man City
Manchester City's coach Pep Guardiola said the English Premier League (EPL) football club is seeking to seal three or four more deals during this transfer window.
The Spanish coach also confirmed at a press conference on Wednesday prior to a pre-season match against Manchester United at Houston's NRG Stadium, that Argentinian Sergio Aguero will stay with City and Nigerian Kelechi Iheanacho will leave, reports Efe.
"We are talking with three or four players, with the next three, four, five years in mind, they are young players. We will see," the former Barcelona and Bayern Munich coach said.
Despite the rumours that surround his Argentinian striker with reports linking him with a move to their EPL rivals Chelsea, the 46-year-old Guardiola said, "He's our player. He will remain here".
But that was not the case for young Iheanacho, as Guardiola confirmed the 20-year-old striker is set to leave the Etihad stadium.
"As a manager it is an honour to work with him. It was not easy for him. I didn't give a lot of chances. He decided to stay in Manchester, and maybe next week he will finish," he added.