It means the 20-year-old is set to leave Greater Western Sydney (GWS) after just two seasons.

The re-signings of Josh Kelly, Lachie Whitfield and Jacob Hopper late in the season virtually squeezed Kennedy out of the Giants.

Carlton led the chase for Kennedy, who also received strong interest from Brisbane Lions, Essendon and Hawthorn.

Kennedy is at home on the farm at Collingullie, resting up after undergoing shoulder surgery on Friday.

He decided on the Blues over the weekend and his manager David Trotter informed both clubs of his decision on Tuesday.

"It's official, and now it's up to the two clubs to get a deal done," Trotter said.

"The main thing with Matty, he enjoyed it at the Giants but it's about opportunity.

"He did well to play a fair few games up there this year but Carlton has a young list and there is an opportunity to play as an inside midfielder, where he plays his best footy.

"The re-signings late in the year (at the Giants) of a lot of midfielders squeezed him out."

Kennedy played 16 AFL games for the Giants this year, and averaged 17 disposals a game.

He played 19 AFL games in his two years at GWS.

Kennedy will now join a Carlton midfield, that already boasts the likes of Marc Murphy and Patrick Cripps.