The new signing arrives as a statement of intent from incoming head coach Xabi Alonso, the report says the new Blues manager has made his first major signing.
Italy under-21 international Palestra was being tracked by Serie A titans Inter Milan, but Chelsea has come out on top to bring the talented 21-year-old to Stamford Bridge.
Fabrizio Romano reveals that a verbal agreement is in place for a package that exceeds €55 million with add-ons and sell-on clauses attached.
Palestra enjoyed an impressive season for loan club Cagliari after earning an Italy call-up following a sensational loan with Serie A side Cagliari, and has been compared to both Mal and David Beckham with his attacking nature from a defensive position.
Capable of playing both sides of defence, he comes at 47 million, as Alonso brings his first signing into West London in a bid to revive the team after a dismal 10th position in the Premier League last term.
Alonso should have no concerns that he might make further additions as he looks to rebuild the squad. They say the Premier League club is looking to strengthen from back to front in defence and attack, with several midfielders also on the horizon.
With the arrival of Palestra, Chelsea is beginning a new era at Stamford Bridge, aiming to become the dominant force in English football.
