The France under-21 international, 21 years, is expected to become the latest summer signing at Stamford Bridge, per reports.
Mail Sport’s Transfer Confidential column revealed on Monday that Chelsea had stepped up their pursuit of Michael Olise.
He was formerly an academy player at Chelsea between the years of 2009 to2016.
Olise is currently on the recovery table from a torn hamstring suffered while playing for France at the Under-21 European Championship earlier this summer, which will keep him sidelined until the end of September.
He would be the latest incoming at the West London club as American owner Todd Boehly once again continues the cash spree.
They have just concluded a British record £115m deal to sign Moises Caicedo from Brighton and are chasing the £50m Southampton midfielder Romeo Lavia.
If a deal is reached for Romeo Lavia, then Chelsea’s summer cash splash would be pushing the £400m mark after they already acquired the services of Christopher Nkunku, Axel Disasi, Nicolas Jackson, Robert Sanchez, Angelo Gabriel and Lesley Ugochukwu.
Olise’s purchase would also push the total amount spent since Boehly took over close to the £1billion mark.
Olise’s arrival to Reading two years ago in a deal worth £8.37m turned out to be his springboard, Olise has established himself as an important figure in Roy Hodgson’s team.
In April, he became the youngest player to assist with three goals from open play in a single Premier League match when Palace thrashed Leeds 5-1.
And in May, Olise became the first Palace player to register 10 assists in a single Premier League season. His final tally of 11 was the fourth-highest in the top flight.
Chelsea have focused on boosting the midfield options at new coach Mauricio Pochettino’s disposal in recent days.
They trumped on Liverpool to sign Ecuador international Caicedo, 21 years, from Brighton, with confirmation coming on Monday.
The Blues are also set to beat Liverpool to the signing of Lavia from Southampton after the midfielder rejected a move to the Reds.
Pochettino needed additional right-wing options, hence the signing of Olise. Hakim Ziyech hasn’t been handed a squad number, leaving only Noni Madueke as a natural right-sided winger.
Raheem Sterling played on that side in the season-opening 1-1 draw with Liverpool on Sunday, with Reece James behind him as a right wing-back.