Potter becomes the first managerial appointment of the Todd Boehly era following his summer takeover. The American is still acting as sporting director having moved on director Marina Granovskaia, chairman Bruce Buck and technical and performance advisor Petr Cech in a complete overhaul of Roman Abramovich's trusted staff.
Sky Sports News understands Chelsea have paid Brighton a total of £21.5m in compensation for Potter and the other four members of staff that have followed him to Stamford Bridge.
'We are thrilled to bring Graham to Chelsea," said Boehly after Potter's appointment. "He is a proven coach and an innovator in the Premier League who fits our vision for the club. Not only is he extremely talented on the pitch, he has skills and capabilities that extend beyond the pitch which will make Chelsea a more successful club.
- "He has had a major impact at his previous clubs and we look forward to his positive impact at Chelsea. We look forward to supporting him, his coaching team and the squad in realising their full potential in the coming months and years."