Chelsea boss Jose Mourinho admitted last week that de Bruyne was close to leaving Stamford Bridge, with two clubs submitting bids for the Belgian international.
He's fallen out of favour amid stiff competition for places at Chelsea, and the BBC reports Wolfsburg and Chelsea have agreed a package to bring de Bruyne to Germany, in a deal potentially worth up to £20m for the Blues.
On Twitter, Ben Smith said: "Kevin de Bruyne will join Wolfsburg in next 48 hours. Fee could rise to £20m.
"#CFC will use that money to re-sign Nemanja Matic."
Mourinho has been heavily linked with the £20m-rated Matic since the summer, with the club short of first-team options in central midfield.
They've been reliant on 35-year-old Frank Lampard, John Obi Mikel and Ramires, although the Brazilian has often been deployed in a wide right role.
The Chelsea boss has made it clear that another striker is not on the cards this month, but the BBC tweet seems to suggest a midfielder could be arriving sooner rather than later.