Brazilian news agency Agência reports Luiz and Barca have agreed a massive five-year contract running to 2019.
The deal is worth €5.5 million-a-year and will see Luiz rake in a total of €27.5 million over the course of the agreement.
Barca now must reach terms over a fee with Chelsea for Luiz, who still has two years to run on his existing deal.
Barca are hoping to do business for around €25 million.
For breaking stories and all the great banter like us on Facebook: facebook.com/tribalfootball