The Blues are considering moving away from Stamford Bridge and had lodged a bid to move to the iconic 39-acre site on the south bank of the River Thames.
The west Londoners released plans in May that detailed how they hoped to turn the derelict site in to a 60,000-seater stadium incorporating the four famous chimneys.
Administrators Ernst & Young revealed last month that they had shunned the Blues' offer, opting instead to name a Malaysian consortium as the preferred bidders.
And after a 28-day due diligence process, the consortium's bid has been rubber-stamped.
"Following a global marketing process that started in February 2012 and covered all major world wealth centres, a consortium comprising SP Setia, Sime Darby and the Employees' Pension Fund of Malaysia have exchanged contracts on the (Battersea) site for £400m," a statement from Ernst & Young read.
The consortium have planning consent to build 3,500 homes and 1.7 million square feet of office space. They also plan to build a tube station on the premises that will connect to the Northern Line.
Last year Chelsea failed in their bid to buy back the freehold of the 42,000-capacity Stamford Bridge from supporters group Chelsea Pitch Owners.