The striker, who has been on loan at San Siro, will join the Italian club on a permanent basis, although reports suggest his future may actually lie at Atletico Madrid
The Spain striker agreed a two-year loan deal with the Rossoneri over the summer but has struggled to find form at San Siro and has been widely reported to be on the verge of returning to boyhood club Atletico Madrid.
Both Chelsea and Milan confirmed on Saturday that an agreement has been reached to make the 30-year-old's move to Italy permanent, with the transfer set to be completed on Jan. 5.
However, it remains to be seen whether Torres will then secure a switch back to La Liga, with Italy international Alessio Cerci believed to be heading in the other direction as part of the deal.
"Fernando Torres is to join AC Milan on a permanent basis," a statement released via Chelsea's official website reads.
"The striker moved to the San Siro on a two-year loan deal in August and on January 5 he will complete a permanent transfer to the Serie A side.
"Chelsea Football Club thanks Fernando for his service during the past four seasons and wishes him the very best for the future
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