The Universidad de Chile attacker has caught the eye of a number of big European teams after spectacular performances for his club, and he has also broken into the Chile national side.
Andre Villas Boas had been rumoured to be preparing a bid for the South American, but the 22-year-old has confirmed that he will move to Naples in the new year.
“Yes I will be joining Napoli, a large team in Italy,” the forward confirmed to Radio Cooperativa.
“I’m sure I’ll do very well there. I already know Edinson Cavani and Ezequiel Lavezzi.
“I am very happy that everything was tied up quickly, and for me to play in Italy is a dream come true,” he stated.
Vargas will move to the Serie A side for a fee of €13.6 million (£11.5million) and will now be eligible for Napoli’s Champions League campaign, in which they take on Chelsea in the last 16.
By Gareth McKnight