The 21-year-old Ghana international is set to replace Filipe Luis as competition for Cesar Azpilicueta, after the Brazilian defender returned to Atletico Madrid earlier this summer.
Augsburg spent €2.5m to sign Baba Rahman from Greuther Fürth and look set to make a huge profit on the talented young left back.
According to Gianluca Di Marzio, Chelsea will pay Augsburg €20m up front with a potential €5m more to be paid in add ons based on appearances for the club.
Baba Rahman is said to have agreed a five year contract at Stamford Bridge worth €3m a season.
The youngster will become Chelsea’s most expensive summer signing thus far, joining fellow new faces Radamel Falcao, Nathan, Asmir Begovic and Danilo Pantic.
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