The 21-year-old appeared to be on the verge of a move to Inter Milan after the Serie A champions made a €45million plus €5m in bonuses.
David Ornstein has since reported that Chelsea were looking to hijack the deal for the Atalanta sensation at the last minute.
He has now revealed that Chelsea’s deal to sign the young wing-back is ‘advancing at rapid pace’ and an agreement between clubs is expected within the next 24 hours.
Palestra is now heavily leaning towards a move to Stamford Bridge and would become the first signing of the new Xabi Alonso era.
Personal terms have not yet been agreed but it’s understood they would fit within Chelsea’s strict wage structure.
Chelsea are looking for a full-back that can play on both sides and believe Palestra would be a perfect fit for Alonso’s system.