English tabloid Daily Mail on Thursday reported that the Blues agreed to activate the striker's release clause after Liverpool grew cold feet on the deal.
The German international has a release clause of £53 million in his contract at the Bundesliga side, which Chelsea are willing to trigger.
The clause has to be triggered by June 15 and despite Liverpool previously being considered front-runners and Werner's repeated praise of Jurgen Klopp's team, he looks set to join their Premier League rivals.
Reports indicate that Werner's agent Karlheinz Forster held talks with Chelsea and the finer details of the deals are set to be thrashed out early next week before the official announcement.
Chelsea are said to have a full war chest after sitting out of two transfer windows due to a FIFA ban and the sale of Eden Hazard to Real Madrid last summer.
Werner reportedly made up his mind to leave RB Leipzig in March and having not heard from Liverpool in weeks, he is now on the brink of confirming a move to Chelsea.
The striker has been an ever-present force in Julian Naglesmann's side this season with 31 goals in 30 competitive games and 12 assists.
He joined Leipzig from Stuttgart in 2016 and has since become one of the best strikers in the Bundesliga with 75 goals in 122 games.