Estádio do Dragão boss is free to join Stamford Bridge.
FC Porto manager Andre Villas-Boas has resigned from the Portuguese club and is now free to become the new Chelsea boss.
Reports from Portugal’s national news agency Lusa, says Villas-Boas handed in his resignation by fax this morning.
Portuguese media have widely reported the 33-year-old coach is poised to join Chelsea on a three-year contract.
His resignation means Chelsea will no longer have to pay the £13.2million buy out clause in his contract.
Villas-Boas, a former assistant of Jose Mourinho at Chelsea, won the Portuguese league and Cup and the Europa League last season — his first in charge at Porto.
It is believed Chelsea owner Roman Abramovich wants a dream team of Villas-Boas as manager and Guus Hiddink as director of football.
Originally the Russian billionaire wanted Hiddink as boss, but was put off by the Dutchman wanting to leave a lot of the work to coaches.
It is reported that Inter Milan are now after Hiddink as their boss, following Leonardo’s move to Paris St Germain and Fabio Capello’s snub to stay with England.