Chelsea, who made the 21-year-old Argentina international available for £43 million last month, are open to an initial loan exit under specific terms that would trigger a full transfer.
The talks follow Chelsea’s record £117 million agreement to sign Villa forward Morgan Rogers on Saturday night.
Striker Nicolas Jackson, valued at £65 million, was also discussed in a potential separate swap deal, but Garnacho remains the primary target.
If finalised, he would become Villa’s fourth summer signing after Johan Manzambi, Joao Gomes, and Modou Keba Cisse.
Villa have generated nearly £200 million in player sales, with Youri Tielemans, Donyell Malen, Enzo Barrenechea, and Lewis Dobbin departing. Chelsea signed Garnacho from Manchester United last September for £40 million, with United entitled to 10% of any future fee.
The winger has scored just one Premier League goal for the Blues, and new arrivals Rogers and Geovany Quenda have intensified squad-reduction efforts at Stamford Bridge.
