The 26-year-old World Cup winner was the subject of rumours and speculation throughout transfer deadline day, but has now put pen to paper on a five-year-deal at Stamford Bridge.
The transfer saga began in earnest last week when the Reds declined an offer from Chelsea and then rejected a transfer request from Torres, insisting the player would be required to honour his long-term contract at the club.
Despite this, negotiations between the clubs continued and a conclusion was reached on Monday, allowing the forward to undergo a medical and agree personal terms with the reigning league champions.
A statement on Torres' official website said: "Spain international Fernando Torres will defend the Blue shirt of Chelsea after joining the London club on the January transfer deadline.
"The striker has signed for the reigning Premier League and FA Cup champions for five and a half seasons.
"After Liverpool and Chelsea had reached an agreement, the player travelled down to London where he successfully passed his medical before agreeing personal terms. Fernando Torres then put pen to paper on a deal that will see the forward remain at Chelsea until June 2016."
Torres had joined Liverpool from boyhood club Atletico Madrid for a fee of around £25m in July 2007 and bagged 33 goals in all competitions during a stunning debut campaign.
The striker went on to play a total of 142 times and score 81 goals in three-and-a-half successful personal seasons on Merseyside.
Despite enjoying a close relationship with the club’s fans, a lack of trophies and the Reds’ inability to challenge for major honours haunted the player, who has long been linked with an Anfield exit to various destinations around Europe.
The fact he has joined another English club will be a bitter pill for Liverpool fans to swallow in a deal comprehensively becomes a new British transfer record.
Torres, who is yet to win a major honour in club football, has already amassed 82 caps for Spain, scoring 26 times.
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