The deal is worth up to 50 million pounds ($59.60 million), according to British media.
“I’ve obviously achieved a lot in my career so far, but there’s still a lot to do and I’m really looking forward to doing that in a Chelsea shirt,” Sterling told the club’s website.
“London is my home and where it all started for me, and it’s amazing to now have the opportunity to play in front of my friends and family week in and week out at Stamford Bridge.”
He’s there! 😁#SterlingIsChelsea
– Chelsea FC (@ChelseaFC) 1657728811000
Sterling becomes Chelsea’s first signing under new ownership led by Todd Boehly and Clearlake Capital, who officially took over from Russian Roman Abramovich at the end of May.
The 27-year-old made 47 appearances in all competitions for City last season, scoring 17 times and providing nine assists.
After starting his senior career with Liverpool, Sterling moved to City in July 2015 and established himself as a regular on the Manchester club’s front line, scoring 131 times in 339 games for Pep Guardiola’s side.
He has won the league title and League Cup four times, as well as an FA Cup.
—Raheem Sterling (@sterling7) 1657710070000
However, he fell down the pecking order last season, playing only a limited role in City’s run to the league title and Champions League semi-final, with Guardiola often preferring Phil Foden or Jack Grealish on the left side of the attack.
Sterling said goodbye to City in a social media post earlier on Wednesday.
“I arrived in Manchester at 20. Today I leave as a man. Thank you for your unwavering support. It was an honor to wear the Manchester City shirt,” he wrote.
Sterling, capped 77 times by England, will add much-needed firepower to Chelsea’s attack after struggling in front of goal last season and Romelu Lukaku’s departure to Inter Milan.
Thomas Tuchel’s side finished third last season, 19 points behind champions City. They kick off the new season with a trip to Everton on August 6.