Potter has left fellow Premier League club Brighton to take up the role and has signed a five-year deal with the Blues.
The 47-year-old said he was “incredibly proud and excited to represent Chelsea”.
“Chelsea is delighted to welcome Graham Potter as our new head coach, joining us on a five-year contract to bring his progressive football and innovative coaching to the club,” the club said in a statement.
Graham Potter’s first game in charge will be an away derby with fellow west London club Fulham on Saturday.
“We are thrilled to bring Graham to Chelsea,” said the Stamford Bridge club’s chairman Todd Boehly.
“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 takes over before their Premier League trip to Fulham on Saturday.
He had guided Brighton to fourth in the table this season with four wins, one defeat and a draw.
The 47-year-old was appointed by Brighton in May 2019 and has led the club to 15th, 16th and ninth-place finishes in his three seasons in charge. He managed Swansea City in the Championship before joining Brighton.
Thomas Tuchel joined Chelsea after the sacking of Frank Lampard and helped the club win the Champions League in his first season. He also led them to the UEFA Super Cup and FIFA Club World Cup titles last season.
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