The Blues had considered loaning the midfielder for the rest of the season to add depth to their squad.
Luiz is currently on loan at Nottingham Forest, but that deal will be terminated after making just five starts for the Tricky Trees this season.
Chelsea were rejected as Aston Villa won the transfer battle against Juventus
The Athletics report that the 27-year-old has “agreed” a move to Villa Park and that the two clubs are “working towards finalizing the agreement”, which includes an option to buy.
BBC Sports claim Luiz, who joined Juventus for £42.5million in June 2024, preferred a return to Villa to a move to Chelsea.
Villa are in urgent need of reinforcements in midfield after injuries to Youri Tielemans, John McGinn and Boubacar Kamara.
Tielemans will reportedly spend an “extended period” on the sidelines with an ankle injury he suffered against Newcastle United this weekend.
McGinn will spend the next six weeks on the treatment table, while Kamara has been ruled out for the rest of the campaign.
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