The 20-year-old spent the second half of last season on Merseyside on loan, with an option included to make the move permanent for £25million.
Everton have since renegotiated the terms, with the upfront fee now set at £18million and a further £6million in add-ons based on European qualification and appearances. Chelsea have also included a 15 per cent sell-on clause in the agreement, according to the BBC.
George made 11 appearances for Everton during his loan spell, starting once, but he made a strong impression on manager David Moyes.
Moyes described the winger as an "excellent boy with an excellent work-rate" at the conclusion of his initial four-month stint at Goodison Park.
George is an England Under-21 international who came through Chelsea's academy system.
He has been available for a permanent transfer for the past 12 months, having held talks with RB Leipzig last summer.
A separate £22million move to Fulham collapsed on transfer deadline day in September 2025, leaving George still searching for a new home.
The deal with Everton is now subject to the completion of personal terms and a medical.
George is poised to become Everton's second summer signing, following the club's earlier £16million deal, not including add-ons, to sign Hayden Hackney from Middlesbrough.
Everton have also confirmed the permanent transfer of German attacking midfielder Merlin Rohl, whose loan move from SC Freiburg has been made permanent following a successful season on Merseyside.
The Toffees have seen two experienced figures depart this summer, with Idrissa Gana Gueye and Seamus Coleman both leaving at the end of their contracts.
Moyes is continuing to reshape his squad ahead of the new campaign, with George's arrival adding further attacking depth to a side pushing to build on last season's progress.