Argentine international playmaker Juan Sebastian Veron has signed a four-year deal with Chelsea after Manchester United agreed to the sale of the midfielder earlier in the day.
The 28-year-old tied up the 15 million pound move late on Wednesday after passing a medical just hours after England midfielder Joe Cole had completed a 6.6 million pound transfer to the west London club from West Ham United.
The Veron and Cole deals take Chelsea's summer spending beyond the 58 million pound mark.
Chelsea chief executive Trevor Birch told the club's website: "Today we have bought a young Englishman with huge potential and a great champion who can lead us on to better things. It has been a marvellous day for Chelsea."
Veron was quoted in the media as saying that the different culture at Chelsea under Claudio Ranieri could see him get a second lease of life in English football.
"(Manchester United manager Alex) Ferguson trusted me when I first arrived. But later on it seemed we didn't understand each other as well. There were times when I felt he preferred some of my team mates," Veron said in The Sun.
"I think I'll understand Claudio Ranieri better because of the language.
"I've nothing to prove to United. When I play against them I will play to win, like I always do.
"I can do a job in English football -- and in London that will be reaffirmed."
United's decision to sell Veron came a week after Ferguson expressed confidence in the Argentine on the club's pre-season tour of the United States and suggested he did not expect the player to be sold.
But once the move became imminent, Ferguson admitted that the deal was both a footballing and financial decision despite the fact that Veron had cost 28 million pounds when he joined United from Italian club Lazio in 2001.
"The overall package, in terms of what we are saving on his salary and what we are getting from Chelsea made it too interesting for us," Ferguson told United's MUTV channel.
"But I don't think we needed that (money). It's more to do with the number of midfielders we already have."
CHAMPIONS LEAGUE
In sealing the deal on Wednesday, the Argentine is eligible to register for the Champions League third qualifying round before Thursday's 1000 GMT deadline.
United said that 2.5 million pounds of the 15 million fee was "conditional on the performance of the Chelsea team over the next four seasons".
Veron is the sixth high-profile signing made by Chelsea since the takeover by billionaire Russian businessman Roman Abramovich last month.
Along with Veron and Cole, Chelsea have signed up Ireland winger Damien Duff from Blackburn Rovers for 17 million pounds, West Ham defender Glen Johnson (up to 6.0 million), Cameroon midfielder Geremi (6.9 million) and England defender Wayne Bridge (7.0 million).
Veron's departure from Manchester United ends a disappointing two years for the Argentine, who struggled to produce his best form during most of his time at Old Trafford.
The former Boca Juniors, Sampdoria and Parma player helped United to the league title last season but injury and form restricted his appearances in a fiercely competitive United midfield.
