The former Manchester United and Man City star will earn £615,000-a-week playing under new boss Gus Poyet after joining from Boca Juniors.
Tevez, 32, will have a medical before meeting up with his team-mates having agreed his mammoth personal terms.
It completes a remarkable journey from a childhood in the slums of Buenos Aires to becoming the second-highest paid star in world sport.
Shenhua finished fourth in the CSL last season – 16 points behind champions Guangzhou Evergrande Taobao.
Tevez joins other former Premier League strikers Demba Ba and Obafemi Martins at the club, as well as former Inter Milan midfielder Fredy Guarin.
And the Argentina international follows Chelsea star Oscar as the latest global name heading to the Far East.
The Brazilian playmaker will join Shanghai SIPG in the January transfer window in an incredible £60million deal and will earn £500k-a-week.
And Premier League clubs are bracing themselves for another winter raid as state-backed Chinese clubs splash their immense wealth.
A second Stamford Bridge midfielder, John Obi Mikel, has also been linked with a January move to SIPG and John Terry is set to be lured at the end of his Blues contract.
And boss Antonio Conte said that the Chinese Super League money is a danger ‘for all teams in the world’.
Tevez appeared overcome with emotion as he bid farewell to Boca Juniors with a 4-1 win over Colon earlier this month.
He was substituted to a rousing reception in the 90th minute as devastated fans ran onto the pitch to pay homage to their idol.
His boyhood side wished Tevez well in a statement announcing his departure, which included the message: “Good luck Carlitos. You will always be in our hearts.”
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