Chelsea have tonight announced an agreement with Real Madrid that will see Thibaut Courtois leave Stamford Bridge and Mateo Kovacic travel in the opposite direction on loan.
Courtois had been strongly linked with a move to the Spanish capital all summer and failed to report for training this week as the deal - rumoured to be worth £38m - neared completion.
Midfielder Kovacic, meanwhile, will now join the Blues for the upcoming season in an agreement that is believed to include an option to buy next summer.
In a statement, Chelsea said: "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 agreement between the two parties comes after Chelsea reportedly finalised a deal to bring in 23-year-old Athletic Bilbao keeper Kepa Arrizabalaga as Courtois's replacement.
Courtois has been with Chelsea since 2011 and, following a three-year loan spell at Atletico Madrid, became the side's number one, going on to make 154 appearances and winning two Premier League titles, the FA Cup and the League Cup.