The two clubs have been in negotiations over a deal for the 21-year-old for weeks, with Garnacho pushing for a move to Stamford Bridge.
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According to Fabrizio Romano, Chelsea and United have now agreed a £40 million fixed fee for the Argentina international.
It’s understood that Garnacho has already agreed personal terms with Chelsea and has turned down several offers from other clubs throughout the summer.
Garnacho is now expected to put pen to paper on a seven year deal at Cheslea and could feature in their trip to Old Trafford on September 20th.