Barcelona have confirmed they have agreed a deal to sign Raphinha from Leeds United, ending Chelsea's hopes of signing the Brazil international.
Thomas Tuchel had hoped to make the 26-year-old part of new-look attack at Stamford Bridge with the Blues agreeing a £60million fee with Leeds earlier this month.
While Raphinha was thought to be open to a move to west London, his first preference was a move to Barcelona.
Despite the club remaining under severe financial pressure, the Spanish giants have now confirmed a deal is in place.
'FC Barcelona and Leeds United Football Club have reached an agreement in principle for the transfer of Raphael Dias Belloli, Raphinha, pending the player passing his medical,' a short statement read.
Arsenal also held extensive talks with Raphinha's camp but failed to make an offer that came close to Leeds' valuation.
Barcelona's offer is reportedly worth €55m (£46.5m) plus a further €10m (£8.5m) in add-ons - slightly less than the one accepted by Chelsea.
But with Raphinha's heart set on a move to Barcelona - a move facilitated by his agent and former Barca star Deco - Leeds have agreed to those terms.
But with Raphinha's heart set on a move to Barcelona - a move facilitated by his agent and former Barca star Deco - Leeds have agreed to those terms.
While they have missed out on one winger, Chelsea are now poised to confirm the arrival of another in Raheem Sterling.
The London club agreed a fee worth £45m plus a further £10m in add-ons with Manchester City having also agreed a five-year deal with the England international.
Sterling confirmed on Wednesday he has left the Premier League champions in an emotional goodbye message, thanking the City staff and squad after a trophy-laden seven-year spell at the club.
Chelsea are also on the brink of wrapping up a deal for Napoli defender Kalidou Koulibaly.
The Blues have struck a £32m deal to bring the Senegal international to the Premier League with Tuchel eager to sign at least two new defenders this summer.
Koulibaly has already confirmed that talks are moving in the right direction, with journalist Romain Collet-Gaudin quoting the defender as saying: 'I'll confirm that [the transfer] later, but it's on the right track.'
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