The talented playmaker has been linked with a move to Europe in recent times, with Tottenham and the Blues chasing the attacking midfielder.
However, the Stamford Bridge club are thought to have agreed a fee with the Brasileiro club and a medical is also said to have been successfully overcome.
Oscar is in Brazil’s squad for the Olympics Games this summer, and has stated recently that his club future would only be resolved after the culmination of the London Games.
However, Luigi has confirmed that the deal is all but done, with only the legalities to be signed off on for the starlet to move to west London.
“There is a verbal agreement between the two parties. But we have to put that on paper and the lawyer of both clubs have to discuss the matter,” Luigi told Radio Guiaba, translated to English by Sky Sports.
Oscar will join the likes of Marko Marin, Eden Hazard and Kevin De Bruyne as the new faces at the Champions League winning club this summer.
By Gareth McKnight