Andre previously had a spell with Chelsea working alongside Jose Mourinho and is often referred to as ‘Mini-Mourhino’, the 33-year-old helped guide Porto to Europa-League success while winning the cup and league title in Portugal this season and he is set to hold talks with Chelsea in London on Wednesday to discuss personal terms.
Should he agree personal terms, Villas-Boas will become the youngest Premier League manager.
Chelsea had been on the look out for a new manager after sacking Carlo Ancelotti at the end of the season, it now seems certain that the Blues will get their man.
Chelsea said in a statement on their official website: "We note that the release clause of Andre Villas-Boas has been activated.
"We can at this time confirm our interest in him and hope to reach agreement with him on personal terms and make a further announcement in the near future."
Porto has also confirmed that Vitor Pereira will now takeover as their new coach on a two-year contract, after announcing earlier that they had received payment to release Villas-Boas.
A statement to the Portuguese Securities Market Commission read: "FC Porto, in accordance with Article 248 paragraph 1 of the Securities Code, hereby informs the market they have received from Mr Andre Villas-Boas the amount provided for in clause to terminate his employment contract."
