It was understood the Blues had agreed to pay the France Under-21 winger’s £35million release clause.
The 21-year-old, who can play either as an attacking midfielder or out wide, is currently out with a hamstring injury and is unlikely to be fit before September.
Olise has appeared 63 times in the Premier League for Palace since signing from Reading in 2021 and played an influential role last season in the absence of Wilfried Zaha, who spent part of the campaign injured. Chelsea, who broke the British transfer record for the second time in eight months with the signing of Brighton’s Moises Caicedo for a possible £115m on Monday, had hoped to make Olise their latest recruit in a deal that would have pushed their net summer spend to £175m. PA understands the Blues have agreed an initial £53m fee to sign Romeo Lavia from Southampton, with the midfielder undergoing a medical on Wednesday.
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