The report was first posted by Journalist David Ornstein that the Portuguese has chosen to join the Blues.
There were also interest from Arsenal and Manchester United but Felix decided to join Chelsea over the rest
The initial agreement is for a loan probably with a full purchase option.
Felix joined Atletico Madrid in July 2019 for a transfer fee of €126 million (£113 million) which made him the club's transfer record.
He was tagged untouchable by the club but after a recent dip in form, it seems Atleti are ready to count their loss and let him go.
It is still speculation as neither side has commented on the matter but Atleti's President Enrique Cerezo has made it clear they won't stop him from leaving.