The 23-year-old is being squeezed out of Stamford Bridge after struggling to adjust to the demands of the Premier League last season following his £40m move from Monaco.
Earlier reports claimed the arrival of Mateo Kovacic was the final nail in the coffin for Bakayoko's hopes of retaining a place in the side, a decision which has left the France international disappointed that he is not part of Maurizio Sarri's plans.
The final tick in the box to seal Bakayoko's move was reported to revolve around his hefty wage demands, but after seemingly reaching an agreement with the Rossoneri, who have Financial Fair Play limits to consider, the season-long loan deal is expected to be confirmed on Saturday - the same day the Blues start their league campaign against Huddersfield - per the Mirror.
The deal for the 23-year-old is expected to include an option to buy as Chelsea look to offload the midfielder who has become surplus to requirements following the Blues' summer recruitment - per Sky Sports.
Kante doesn't have to babysit Bakayoko anymore. Jorginho & Kovacic next to him in midfield.. tears in my eyes.— َ (@HazardEdition) August 8, 2018
Sarri further bolstered Chelsea's midfield options by adding Kovacic and Jorginho during the summer, a position which also features the likes of Cesc Fabregas, Danny Drinkwater, Ruben Loftus-Cheek, Ross Barkley and N'Golo Kante.
Ahead of Saturday's trip to face the Terriers, the Chelsea boss revealed he was intent of trimming his squad this month.
He said: "Now I think the squad is too large. Some players have to go on loan. I don't know who at the moment. I prefer to have 23 or 24 players and three or four very young players. No more," he added.