During negotiations, Chelsea’s squad size and recruitment have been discussed as well as the make-up of Pochettino’s backroom staff.
Talks have progressed positively in the last few days between both parties but no formal deal has been signed yet.
Chelsea have been admirers of Pochettino in the past and enquired about his availability when Thomas Tuchel left in September.
The 51-year-old, who has been out of work since parting company with Paris Saint-Germain in July 2022, has been approached by Real Madrid twice before and has also turned down several offers in recent months from clubs in various European leagues.
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Chelsea’s search for a new manager had been reduced to three names, with Pochettino joined on the shortlist by Burnley boss Vincent Kompany and an unnamed third coach.