Nike will supply kits for the Premier League club from the beginning of the 2017-18 season however the length of the deal remains unknown.
The news comes one week after Chelsea announced that it would end its £30m per year kit agreement with Adidas six years early in what it said was a "mutual agreement".
As a result of the premature exit with Adidas Chelsea will pay a compensation fee, reportedly in the region of £40m, to the German sportswear giant.
In cutting ties with Chelsea Adidas continues its trend of sponsoring fewer teams in favour of promoting its individual stars including Paul Pogba and Gareth Bale. The brand has also worked to unite its top teams - Manchester United, Chelsea, Real Madrid, AC Milan and Juventus - under one umbrella strategy for the first time.
Chelsea director Marina Granovskaia ris understood to have negotiated the new Nike sponsorship after sealing a £40m per year partnership with tyre company Yokohama and a £10m per year training kit deal with energy drinks company Carabao.
Chelsea’s partnership with Nike will see the Roman Abramovich-owned club generate twice as much as their London rivals Arsenal who wear Puma and around three-times more than Manchester City who are also with Nike, however their contract is due to expire in 2019 and will likely see an increased offer after negotiations.
Within the increasingly lucrative Premier League, Manchester United still boast the most expensive kit deal – a £75m per season agreement with Adidas.