The Argentina international, formerly of Brighton, has been outstanding for Strasbourg since moving to Ligue 1 last year.
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Barco has now agreed to move to Chelsea, reports talkSPORT, after accepting a six-year contract offer from the Blues in recent days.
Chelsea and Strasbourg will now thrash out a fee for the 21 year-old youngster, though that will be a formality given the two clubs share the same owners, BlueCo.
Significantly, Barco produced career-best form with Strasbourg under coach Liam Rosenior before his appointment as Chelsea manager in January.