Potter has left fellow Premier League membership Brighton to absorb the position and has signed a five-year deal with the Blues.
The 47- Year Old stated he was "fantastically proud and excited to represent Chelsea".Thomas Tuchel as manager.
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Potter's first game in charge will be an away derby with fellow west London club Fulham on Saturday at 12:30 BST.
"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."
