The Blues have been monitoring the 18-year-old defender's progress for some time and look to have seen off interest from other European clubs to capture the full-back's signature
The Blues already own a 40 per cent stake in the 18-year-old defender, who now looks set to join Roberto Di Matteo’s side in a deal worth around £4.4 million, but is expected to go straight back to Fluminense on loan.
Braga confirmed the European champions have been tracking the youngster for some time and they finally decided to thrash out a deal amid growing interest from other clubs in Europe.
"Wallace has been negotiated for a long time,” he told Terra. “He is a player that has impressed. Do you think people abroad sign someone based on one game?
"They watch a player for two, three months - sometimes even a year. They are taking a great player and Fluminense are completely right in selling him."
Fluminense’s director Rodrigo Caetano, however, said the deal wasn’t as concrete as some reports have suggested and there are still reasons the move may not go ahead.
"I can't deny there are ongoing negotiations with Chelsea, but the deal isn't done yet; we still have exchange documents," said Caetano.
"There is a non-disclosure agreement clause, and in case the information leaks, the deal might not happen.
"Let's hope this problem doesn't prevent the deal from happening."