And the 31-year-old Argentina international wants to join former Napoli coach Maurizio Sarri at the English club which would take over his 36 million euro ($41 million) buy-out clause.
“Chelsea have an agreement with Higuain to take him immediately,” Gazzetta reported.
Higuain had his most successful season under Sarri, breaking the Serie A goalscoring record with 36 goals in the 2015/16 campaign.
He scored 91 goals during his three years at the club before moving to Juventus in 2016 on a 90 million euro deal.
He previously spent six years at Real Madrid before starting his career at River Plate in Argentina.
Higuain had been hampered by a back injury earlier in the season but broke his two-month goal-scoring drought before the winter break.
Milan‘s sporting director Leonardo however warned on Tuesday he had to get down to work.
“He had a tough moment, he has to put it behind him and get to work,” said Leonardo.
“A goal can change things, but if he is to continue here, he needs to take on responsibility.”
Brazilian Leonardo added: “There’s no point following rumours and gossip.
“He is here right now. Seeing as he is here, he needs to get down and actually do something for this team.”