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The news comes following The Blues’ sacking of Thomas Tuchel following a 1-0 defeat to Dinamo Zagreb in the Champions League Group Stage on Tuesday night.

Brighton boss Potter was quickly identified as a potential replacement for Tuchel following his impressive start to the season with The Seagulls.

Former Newcastle United man on verge of shock return to management

Newcastle Head coach Eddie Howe with Brighton head coach Graham Potter (r) on the sidelines during the Premier League match between Newcastle United and Brighton & Hove Albion at St. James Park on March 05, 2022 in Newcastle upon Tyne, England. (Photo by Stu Forster/Getty Images)

Since joining Albion from Swansea City in 2019, the 47-year-old has led the club to 15th, 16th and 9th place finishes in the Premier League. He is set to leave the club sitting fourth in the table with 13 points from their opening six Premier League games.

It is understood that Potter spoke with Chelsea owner Todd Boehly and reached a verbal agreement to become the next manager at Stamford Bridge.

Chelsea have now confirmed the appointment of Potter with Boehly stating: “We are thrilled to bring Graham to Chelsea. He is a proven coach and an innovator in the Premier League who fits our vision for the club.

"Not only is he extremely talented on the pitch, he has skills and capabilities that extend beyond the pitch which will make Chelsea a more successful club.

"He has had a major impact at his previous clubs and we look forward to his positive impact at Chelsea. We look forward to supporting him, his coaching team and the squad in realising their full potential in the coming months and years.”

BBC Sport eported that former Tottenham Hotspur boss Mauricio Pochettino and Sporting Lisbon head coach Ruben Amorim also held talks with the club regarding the vacant managerial position prior to Potter’s appointment.

Newcastle United's Premier League rivals suffer blow as Chelsea appoint Graham Potter