Chief Executive Peter Kenyon added: "The deal is a new club transfer record and is a straight cash deal. We are delighted to have signed one of Europe's greatest goalscorers."

The news that Shevchenko had finalised his switch was first broken by AC Milan's website, which said in a statement: "AC Milan communicates it has ceded definitely the sporting rights of Andriy Shevchenko to Chelsea."

The club swiftly released another statement saying: "Milan thank Shevchenko, an extraordinary man and striker, for the great amount of excitement he provided in the seven seasons in which he wore the red and black shirt.

"His 173 goals, making him the second top scorer in the club's history, have contributed in a vital manner to the winning of an Italian league title, an Italian Cup, Super Cup, a Champions League and a European Supercup."

Shevchenko, born in Dvirkivshchyna, Ukraine, on 29 September 1976, began his career with Dynamo Kiev, making his debut as a teenager in 1994.

In 1997-98, when already a Ukraine international, he sprung to the attention of the European game when he scored a hat-trick in a 4-0 win over Barcelona at the Nou Camp.

In 1999 he joined AC Milan and was an instant success - going on to win the European Footballer of the Year prize in 2004.

He has also led his country to their first World Cup finals.

Shevchenko becomes Chelsea's third signing of the summer after midfielder Michael Ballack from Bayern Munich and Feyenoord striker Salomon Kalou.

Mourinho is also reported to be interested in signing Real Madrid and Brazil defender Roberto Carlos and goalkeeper Hilario from Portuguese club Nacional de Madeira.

Shevchenko Factfile

Name: Andriy Mykolayovych Shevchenko

Born: September 29, 1976, Dvirkivschyna, near Kiev

Height: 1.83 m (6ft)

Weight: 72kg (11.3st)

Career History

Chelsea Football Club 2006 -

Sets Chelsea transfer record

AC Milan 1999 - 2006

Second highest scorer in Milan's history with 173 goals in 296 games European Footballer of the Year 2004 Serie A Championship: 2004 Serie A Top Scorer: 2000, 2004 Italian Cup: 2003 Champions League: 2003 European Super Cup: 2003

Dynamo Kiev 1994 - 1999

Made professional debut in 1994 and netted 94 goals in 166 games for Dynamo Ukrainian Championship: 1999, 1998, 1997, 1996, 1995 Ukrainian Cup: 1998, 1996

International

Captain of the Ukrainian national team and has scored 28 goals in 63 internationals

European Record

Set the competition record with 52 Champions League goals in 90 games