The 24-year-old midfield player has signed a five-year deal after passing his medical at Stamford Bridge, the English club announced on their website this evening.
He becomes the second arrival at the club under new Russian owner Roman Abramovich after defender Glen Johnson's signing from West Ham United FC was sealed earlier in the day. Chelsea have also reportedly agreed a fee in the region of €24.2m with Blackburn Rovers FC for Republic of Ireland winger Damien Duff.
"I'm very happy to come and play for one of the biggest teams in the Premier League," Geremi told Chelsea TV. "I've got a lot of ambition and I would like to win a lot of titles if it's possible - and that's why I've come here. Chelsea want to sign big players and that is good for us - when you play with big players it is much easier. They can understand everything."
Champions League hopes
Geremi was brought to Madrid from Turkish club Gençlerbirligi SK in 1998/99, but spent last season on loan at Premiership club Middlesbrough FC. Twice a UEFA Champions League winner at the Santiago Bernabéu, he will hope for more success in the competition when Chelsea begin their campaign in the third qualifying round next month.
Gudjohnsen extends stay
Meanwhile, Icelandic striker Eidur Gudjohnsen has signed a one-year contract extension keeping him at Chelsea until 2006. He said: "There has been speculation going on for months about my future so I am just glad that it is over. I have always stated how much I enjoy it here and hopefully we are going into a great season."
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