The Argentine will see his wages double to €12 million at Stamford Bridge and will take over from interim boss Guus Hiddink ahead of the 2016-17 campaign.
Diego Simeone has informed Atletico Madrid that he will leave the club at the end of the season to take over at Chelsea, according to OK Diario.
The Argentine - who led the Rojiblancos to the Liga title and Champions League final in 2014 - has long been the preferred choice of Blues owner Roman Abramovich following the sacking of Jose Mourinho.
And Simeone has decided that he wants to undertake a new challenge, with the Stamford Bridge outfit set to double his wages to €12 million a year.
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