Joao Pedro joins former Ipswich Town striker Liam Delap at the Blues, who are currently in the Club World Cup quarter-finals, where they will meet Palmeiras early on Saturday morning in Europe (03:00 CET).
A former Fluminense academy product, Brazilian international Joao Pedro has already spent time in London, after signing for Watford back in 2019. He would move to Brighton in 2023 for 34.2 million euros, playing 58 times in the Premier League for the Seagulls, scoring 19 goals.
He joins the squad immediately and will be available for Friday's Club World Cup clash.
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Speaking to Chelsea's official website, he said of his move: "Everyone knows this is a big club with a great history.
"They had brilliant players in the past and have brilliant players now. So I am excited to join and you know when you are a Chelsea player you must think one thing - win."
Joao Pedro also said that his decision was influenced by former Blues defender David Luiz.
He added: "I'm close a little bit to David Luiz. I spoke to him, not about Chelsea, but about my career and how I could develop better. He helped me."