Chelsea wanted to bring Russia international Golovin to Stamford Bridge this summer.
His enticing £25m price tag made the CSKA Moscow star worth considering.
But the Blues have been frozen out of a deal, with Monaco now set to sign him.
Monaco’s vice-president Vadim Vasilyev has revealed a deal is in place for the player to head to Ligue 1.
“Monaco and CSKA finally finally agreed on the transfer of Golovin,” Vasilyev said of the Russian star, who is also wanted at Juventus.
“It’s a standard five year contract. Honestly, until the last moment I wasn’t sure we’d be able to complete this transfer.
“In addition to Chelsea, Golovin was also wanted by Juventus.
“At a meeting with one of the directors of the Turin club in May this year, I heard that Golovin’s move to them was a done deal.
“However, our main competitor was Chelsea.”
Chelsea have signed one first-team player so far in this transfer window, with Jorginho arriving from Napoli.
They are keen to bring in new stars, with Maurizio Sarri eyeing players in Serie A.
Daniele Rugani and Gonzalo Higuain are wanted from Juventus.