The Brazilian playmaker was expected to sign for Los Blancos either in January or at the end of the season, however the Blues have nipped in and now look poised to snap up the 21-year-old.
Silva is one of his home nation’s top talents, and has been tipped to make a move to a big European side for some time.
Although a deeper-lying midfielder, his style of play has drawn comparisons with former Ballon d’Or winner Kaka, who was at one time tipped to become an all-time great.
Chelsea are understood to be keen to get a deal done in the new year, with Cruzeiro resigned to losing their starlet.
Real are thought to have been angered by the move from their old manager, and may look to mount a fresh bid to capture the player.
Silva has represented Brazil at U-20 level and is expected to break into the senior Selecao set-up in the not too distant future.