Sky Sports reports the Everton midfielder and his representatives are at Stamford Bridge finalising the transfer.
Barkley, who has not featured for Everton this season despite recently returning to first-team training following hamstring surgery, had less than six months remaining on his contract at Goodison Park.
The England international came close to joining Chelsea in the summer transfer window after the clubs agreed a £35m fee, but ultimately opted against the move.
Tottenham were also interested in signing Barkley last summer, but Sky Sports reports they decided against reigniting their interest in the 24-year-old with Mauricio Pochettino focusing on other targets.
Everton manager Sam Allardyce admitted on Thursday that he was expecting to receive bids for Barkley before the close of the January window.
“I would expect there would be sometime in this window if there is going to be any interest from some of the big boys,” he said.
Barkley, an Everton academy graduate, has scored 27 goals in 179 appearances since making his debut for the club in August 2011.
He was rewarded with a new four-year deal in July 2014 by then-manager Roberto Martinez after featuring for England at the World Cup in Brazil.
Barkley, capped 22 times by England, has previously expressed a desire to play Champions League football and will be eligible to play for Chelsea in their last-16 clash against Barcelona in February.
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