LONDON -- Chelsea has an agreement to sign Spain striker Diego Costa from Atletico Madrid.
Chelsea and Atletico announced the move in statements on Tuesday.
Chelsea met Costa's buyout clause, and Atletico says it insisted on a full buyout, after acceding to Costa's request for a transfer to Chelsea.
The Brazil-born Costa scored 35 goals last season to help Atletico win the Spanish league and reach the Champions League final, knocking out Chelsea in the semifinals. However, he failed to impress in Spain's underwhelming title defence at the World Cup.
Also on Tuesday, Chelsea announced a one-year contract extension for Australia goalkeeper Mark Schwarzer, who arrived on a free transfer from Fulham last summer and was backup to Petr Cech.