Courtois will complete his medical on Thursday morning and be presented at the Santiago Bernabeu stadium at 12pm BST, before attending a press conference.
Meanwhile, Mateo Kovacic will move in the other direction on a season-long loan as part of the deal
A statement from Chelsea read: ‘Chelsea and Real Madrid have tonight agreed terms for the permanent transfer of Thibaut Courtois subject to the agreement of personal terms and passing a medical.
‘Subject to the completion of the deal Mateo Kovacic will join the Blues on a season-long loan.’
The Belgiuan shot-stopper had been agitating for a move away from Stamford Bridge refusing to return to pre-season training in a desperate bid to force a move to the champions League champions.
Chelsea have since opened disciplinary proceedings against the 26-year-old and are set to fine him two-weeks wages worth around £200,000.