The 32-year-old is thus on the verge of reuniting with his former coach and mentor Jose Mourinho in a deal claimed by Spanish sources to be worth €8m.
Media sources in Spain claim that negotiations have been ongoing between the two clubs for much of Tuesday, but not until the evening did Chelsea announce that the deal was taking place, subject to the agreement of personal terms.
The Blues said, "Chelsea Football Club can confirm it has agreed terms with Real Madrid for the transfer of Ricardo Carvalho. The transfer is subject to a medical and the player agreeing personal terms.
"Chelsea would like to thank Riccy for his six years of service, and we wish him well in his future career."
Real Madrid stated shortly afterwards that Ricardo Carvalho "would be under contract at Real Madrid for the next two seasons," implying that both wages and the medical test were mere formalities.
Neither announcement offered the transfer fee, but €8m is reported to be the sum of the deal. It has been further rumoured that there is a "plus-one" option on Carvalho's two-year deal, but this was not mentioned by the Santiago Bernabeu club.
Carvalho will serve as Madrid's fifth summer signing after wide midfielders Angel Di Maria and Pedro Leon, attacking midfielder-cum-forward Sergio Canales, and central midfielder Sami Khedira.
At the Bernabeu he will compete with Raul Albiol, Pepe, and Ezequiel Garay for a starting berth, while if Real Madrid sign an attacking full-back, as is expected, he may also have to jostle for position with Sergio Ramos.
|End of an Era
Chelsea apps: 210
Chelsea goals: 11
Highlight: Integral member of the one-loss, 15-goals-against Prem side of 04-05
Carvalho was the joint third-longest serving player in the Blues squad, with only John Terry and Frank Lampard having been at Stamford Bridge for more seasons.
The Portuguese defender was part of the Abramovich-Mourinho set brought in in 2004, alongside Didier Drogba, Paulo Ferreira, Petr Cech, Arjen Robben, Tiago, Alex, and others.
While at the Bridge Carvalho won three Premier Leagues, three FA Cups, two League Cups and two Community Shields.
Follow Goal.com on . Get the latest football news direct... Check out Goal.com's page; be part of the best football fan community in the world!