The 24-year-old is now back at El Santiago Bernabeu, after spending last season on loan at Middlesbrough.
Boro did have first refusal on the player, but they have baulked at Real's asking price - which is around ‚é¼9 million - and offered just ‚é¼5 million.
Talks with The Teessiders have now ground to a halt and Chelsea have moved to make an offer, which has been accepted by the Spanish champions.
"Chelsea are favourites to get him," Barry Silkman confirmed to planetfootball.com.
"Talks are ongoing and things are progressing."
Chelsea, who have just agreed a deal for Glen Johnson, are now set to get a double boost in the next few days when both transfers should be concluded.
