The former Brighton boss has signed a five-year contract with the Blues.
On making the move to Stamford Bridge, Potter said: “I am incredibly proud and excited to represent Chelsea FC, this fantastic football club. I am very excited to partner with Chelsea‘s new ownership group and look forward to meeting and working with the exciting group of players and to develop a team and culture that our amazing fans can be proud of.
“I would also like to place my sincere thanks to Brighton & Hove Albion for allowing me this opportunity and in particular Tony Bloom and all the players, staff and supporters for their continued support during my time at the club.”
Todd Boehly, chairman, said: “We are thrilled to bring Graham to Chelsea. 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.”
Behdad Eghbali and José E. Feliciano, co-controlling owners, said: “Graham is a football innovator and winner on the pitch and a leader off the pitch. He has deeply impressed us with his ideas and approach to football. We are thrilled to partner with Graham to build a winning team, one that embodies the culture of collaboration, innovation, teamwork, player development, and a commitment to excellence on and off the pitch. We are fortunate to have Graham and his team as our partners in that journey.”