Reports earlier today suggested the Chinese side were readying the huge offer.
And it’s now claimed Chelsea have accepted the £60m bid and will sell the player.
The Telegraph report he’s told his Blues team-mates that he’s leaving to join former Stamford Bridge boss Andre Villas-Boas.
Shanghai are said to be quickly getting on with the process, with talks over personal terms for the Brazilian already underway.
Oscar is set to bag a huge rise in wages in the Far East, and is likely to complete the move on January 1 when the Premier League transfer window reopens.
The 25-year-old will play alongside countrymen Hulk and Elkeso in Shanghai.
Other Chinese sides Guangzhou Evergrande and Jiangsu Suning were also reportedly after Oscar.
But a deal with Shanghai now looks to be close.
Chelsea couldn’t refuse the huge offer for Oscar, who hasn’t been a first-team regular this season.
He’s not started since the September defeat to Liverpool, making 11 appearances in all.
The Brazilian joined the club in 2012 from Internacional for £25m and the club are now for a huge return on the player.