This came after Liverpool agreed a deal worth £111 million for Caicedo only to learn that, with a medical already booked, the midfielder would prefer a switch to London.
The Athletic‘s David Ornstein reports that the Blues will pay up to £115 million for the 21-year-old, who is set to undergo a medical on Monday.
Caicedo will sign an eight-year contract at Stamford Bridge, with the option to extend that by a further 12 months, with a Monday announcement likely.
It remains to be seen whether Liverpool will return with a new bid for the midfielder, though it seems unlikely given the discouragement they have received in recent days.
This development leaves Jurgen Klopp‘s side desperately seeking a new marquee target for their defensive midfield position.
A potential British record bid for Caicedo took supporters by surprise, but it gave an indication that the club will pay up for the right player.
Whether that player emerges on the radar, however, is unclear, with the pursuit of the Ecuador international having come after unsuccessful bids for Romeo Lavia.
With Liverpool owner John W. Henry landing in the UK over the weekend, talks should take place over the club’s next steps in the market.
The failed pursuit of Caicedo will only have alerted selling clubs to the funds available at Anfield, though, which is made worse by the very obvious need to sign a top defensive midfielder.