A consortium led by US business tycoon Todd Boehly has agreed a £4.25billion deal to buy Chelsea from Roman Abramovich.
The Los Angeles Dodgers co-owner and his partners saw off a host of rivals to broker the takeover for the highest price ever paid for a sports club.
Boehly, Clearlake Capital, Mark Walter and Hansjorg Wyss must now wait for Premier League and UK government approval before rubber-stamping the deal.
Former British Airways chairman Sir Martin Broughton and Boston Celtics co-owner Steve Pagliuca had also been vying to buy the Blues.
Boehly, the chief executive of Eldridge Industries, is expected to attend Chelsea's Premier League clash with Wolves at Stamford Bridge on Saturday.
Confirming the terms of the deal, Chelsea said in a statement: "Of the total investment being made, £2.5bn will be applied to purchase the shares in the club, and such proceeds will be deposited into a frozen UK bank account with the intention to donate 100% to charitable causes as confirmed by Roman Abramovich.
"UK Government approval will be required for the proceeds to be transferred from the frozen UK bank account.
"In addition the proposed new owners will commit £1.75bn in further investment for the benefit of the club.
"This includes investments in Stamford Bridge, the academy, the women's team and Kingsmeadow and continued funding for the Chelsea Foundation.
"The sale is expected to be complete in late May subject to all necessary regulatory approvals. More details will be provided at that time."
The Boehly consortium is understood to have agreed to clauses that block the payment of dividends or management fees until 2032, also barring the sale of any Chelsea shares for 10 years.
The club has been owned since 2003 by Russian billionaire Abramovich, who steered the club to 21 trophies in his 19 years at the helm.
But in March he put the club up for sale just days before he was sanctioned by the British government in response to Russia's invasion of Ukraine.
The government accused him of having had a "close relationship for decades" with Russian president Vladimir Putin.
Mr Abramovich cannot profit from the sale under the terms of his sanctions, but the Chelsea owner has long since pledged to donate all proceeds to a charitable foundation to aid victims of the war in Ukraine.
The government must agree to his plans to set up an independently run charitable foundation to handle the distribution of those funds.
Mr Abramovich has also insisted he still wants to write off Chelsea's £1.5bn debt to him when the club's sale is complete, but the sanctions currently block such a move.
However, Chelsea and the government are expected to find a resolution, with the Boehly sale agreement paving the way for the deal to be completed.