According to Sky Sport Italia, Higuain will join Chelsea on loan until the end of the season with an option to extend the load for another 12 months subject to certain conditions.
The move would reunite Higuain with his former Napoli coach Maurizio Sarri who helped him claim the Serie A goal scoring record during the 2015-16 season when he netted 36 times in 35 games.
The 31-year-old has been on loan at AC Milan since the start of the season from Juventus, being sacrificed to make space for Cristiano Ronaldo, but has struggled to find top form.
Higuain was left on the bench during Milan's 1-0 loss to Juventus in the final of the Italian Super Cup but did come on for a late 20 minute cameo.