Chelsea agree deal for Costa

Burnley and Pendle Citizen: Diego Costa looks set to join Chelsea Diego Costa looks set to join Chelsea

Chelsea have reached an agreement to sign striker Diego Costa from Atletico Madrid, the Barclays Premier League club have announced.

The Spain international had long been linked with a move to Stamford Bridge and now the Blues have confirmed they have met the buy-out clause for the 25-year-old.

"Chelsea Football Club can confirm an agreement has been reached with Atletico Madrid for the transfer of Diego Costa, with Chelsea meeting the buy-out clause for the Spanish international," read a statement on the club's official website.

Brazil-born Costa netted 35 goals for Atletico last season as they won the Spanish title and reached the Champions League final, where they lost in extra-time to Real Madrid.

The 25-year-old emerged as the leading summer transfer target for Blues manager Jose Mourinho, who was determined to add some firepower to a squad which came up just short behind Manchester City and Liverpool in the Barclays Premier League and were knocked out of Europe in the semi-finals by Atletico.

It is believed the transfer fee will be in the region of £32million.

Defender Ashley Cole has left Chelsea this summer at the end of his contract, along with England midfielder Frank Lampard.

However, former Arsenal captain Cesc Fabregas was signed from Barcelona on June 12, the day before Spain crashed to a 5-1 defeat to Holland in their opening World Cup match in Brazil.

Earlier on Tuesday, Chelsea announced goalkeeper Mark Schwarzer had signed a new one-year contract.

The former Australia international, 41, headed to Stamford Bridge last summer on a free transfer from west London neighbours Fulham to offer back-up to Petr Cech and went on to make 12 appearances - including the semi-final against Atletico after injury to the Chelsea number one.

In a statement on Tuesday night, Atletico said Costa had sought a move to Chelsea but the club had insisted on receiving his full buy-out clause.

"Diego Costa communicated at the end of last season his will to be transferred to Chelsea and today the two clubs have reached an agreement for which the London club must pay the full amount set as the buy-out clause in the contract between the player and the club," the statement said.

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