The 21-year-old is looking to build his first team experience over the season and Chelsea have settled on a move to send him to the north west.
Sterling is set to sign a new contract with Chelsea, running for two years and including an option for a further year, before moving.
He will link up with Neil Critchley’s Blackpool and experience regular game time in the second tier.
Blackpool have had a sluggish start to their Championship campaign with just two points collected from their opening five matches.
Now they are set to strengthen with the addition of Sterling before the transfer window shuts on Tuesday night.
Sterling will have time to adapt to his new surrounds as due to the international break Blackpool are not again in action until 11th September.
Blackpool play Fulham at home in their next game before then welcoming Huddersfield Town to Bloomfield Road.
