Palmer agreed a seven-year contract with Chelsea, who have a club option of a further 12 month extension and could pay City an extra £2.5 million in add-on clauses.
Cole Palmer has signed for Chelsea from Manchester City.
The England Under-21 forward Cole Palmer signed on Friday in a deal worth an initial £40 million ($50 million), according to AFP.
Palmer agreed a seven-year contract with Chelsea, who have a club option of a further 12 month extension and could pay City an extra £2.5 million in add-on clauses.
City were keen to keep Palmer, but the size of Chelsea’s offer eventually persuaded them to cash in on a rising star who was keen for more regular first-team opportunities.
The 21-year-old could make his Chelsea debut in Saturday’s Premier League match against Nottingham Forest at Stamford Bridge.
“I’m excited to get started and it feels great to sign,” Palmer said.
“I’ve joined Chelsea because the project here sounds good and because of the platform I will have to try to showcase my talents. It is a young and hungry squad and, hopefully, we can do something special here.”
Palmer’s move to the Bridge takes Chelsea’s spending in the 16 months since Todd Boehly’s Clearlake Capital consortium bought the club to over £1billion.