Rahman, 21, is understood to be have been of interest to Blues boss Jose Mourinho for some time after a standout season for a side who finished fifth in the Bundesliga last term.
He played 31 times for Augsburg and made more tackles than any other left-back in the German top division last season.
Sascha Empacher, who represents the Ghana international, confirmed to German newspaper Bild: "It is only the clubs that have to find an agreement. We on our side are agreed."
Augsburg have also signed 21-year-old left-back Philipp Max this week, suggesting they are now prepared to allow Rahman to leave.
Rahman began his career at Bundlesliga 2 side Greuther Furth, making his debut as a 16-year-old before a move to Augsburg in 2014.
He has made 31 top-flight appearances for the club and has 11 caps for Ghana, featuring in all their matches at this year's Africa Cup of Nations.
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