Italian side, AC Milan have reached an agreement with Champions League winners, Chelsea to sign Olivier Giroud after a transfer fee was agreed.

AC Milan offered around €2m to Chelsea for the French man and Champions League winner.

According to report, the transfer fee is just €1m, with a further €1m due if Milan qualify for the Champions League or if Giroud makes a certain number of appearances.

Personal terms were agreed as the 34 year old signed a two year contract with the Serie A side.

Announcement from both clubs soon.