The Blues confirmed the appointment on Thursday, with Potter joining from Brighton & Hove Albion on a five-year contract to “bring his progressive football and innovative coaching”.
Chelsea owner Todd Boehly 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.”
Potter led Brighton from 2019 to 2022, achieving their highest ever finish in the 2021-22 campaign. He has previous experience at Ostersund in Sweden, whom he led from the fourth tier to the top flight, winning the Swedish Football Awards Manager of the Year twice (2016, 2017).
He also led Swansea City from 2018 to 2019, taking over following their relegation from the Premier League, finishing 10th before being lured to Brighton to replace Chris Hughton.
Potter said: “I am incredibly proud and excited to represent Chelsea FC, this fantastic football club.
“I am very excited to partner with Chelseas 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.”
Chelsea are scheduled to take on Fulham in Saturday’s early kick-off although Premier League fixtures may be postponed following the Queen’s death on Thursday.