Manager Liam Rosenior is said to have played a key role in the move, having previously approved Barco’s transfer from Brighton and Hove Albion during his spell at Strasbourg.
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The Argentine initially joined on loan before completing a permanent £7.87 million switch last summer.
Barco impressed for Strasbourg this season, registering 11 goal involvements in 38 appearances across all competitions.
The 21-year-old has also broken into the Argentina national team setup, although he is yet to become a regular starter.
The move comes amid uncertainty surrounding Enzo Fernandez’s future at Stamford Bridge, with Real Madrid monitoring his situation.