Chelsea hope to agree personal terms with Andre Villas-Boas after Porto confirmed that they have received the required payment to release their former manager from his contract.
The 33-year-old tendered his resignation with the Portuguese and Europa League champions earlier on Tuesday amid reports of a move to Stamford Bridge and the Blues have now confirmed their interest.
Villas-Boas' resignation has been accepted after Porto received compensation, which is reported to be £13.2million, and he is set to hold talks with Chelsea in London on Wednesday.
Chelsea said in a statement on their official website: "We note that the release clause of Andre Villas-Boas has been activated.
"We can at this time confirm our interest in him and hope to reach agreement with him on personal terms and make a further announcement in the near future."
Porto, who have also confirmed that Vitor Pereira has been appointed as their new coach on a two-year contract, announced earlier on Tuesday evening that they had received payment to release Villas-Boas.
A statement to the Portuguese Securities Market Commission read: "FC Porto, in accordance with Article 248 paragraph 1 of the Securities Code, hereby informs the market they have received from Mr Andre Villas-Boas the amount provided for in clause to terminate his employment contract."
The statement added that all that remained to be settled were the formalities of the termination of the contract.
It would also suggest that Villas-Boas settled the deal himself, although the funds were more likely to have come via the deep pockets of Chelsea owner Roman Abramovich.
Porto added on their official website: "The amount has been deposited on the termination clause of the work contract of Andre Villas-Boas."
Discussions between Villas-Boas and Chelsea will focus on salary, which is understood to be £90,000-a-week, and his determination to bring members of his backroom staff to England.
Fitness coach Jose Mario Rocha is an important colleague of the Porto native after they also worked together at former club Academica Coimbra.
Opposition scout Daniel Sousa is another thought to be wanted by Villas-Boas, who worked in a similar role under Jose Mourinho at Chelsea, when he agrees a probable three-year contract.
Chelsea have been looking for a new boss since Abramovich decided to sack Carlo Ancelotti on the final day of last season following a trophyless campaign.
Turkey boss Guus Hiddink was favourite to return to the managerial position he occupied on a short-term basis in 2009, or even take up a role as director of football.
But the Dutchman is now not expected to move back to Chelsea and has been linked with the job at Inter Milan.
Does Andre Villas-Boas have enough experience to be Chelsea's next manager?