The agreement, which is understood to be worth £60m a season, will run until 2032 and is the largest commercial deal in the Premier League club's history.
Confirmation of the new partnership follows on from months of speculation after Chelsea announced that it would be cutting short its current contract with Adidas six years early. The 10-year partnership with the Adidas was reportedly worth £60m a season and will cost Chelsea £40m to terminate.
— Chelsea FC (@ChelseaFC) October 13, 2016
Nike had long been rumoured to be taking Adidas’ place as the new kit supplier and will now produce kits for the first team, academy and ladies’ teams.
“This is an incredibly exciting and important deal for the club,” said the club’s director Marina Granovskaia.
“Like Chelsea, Nike is known around the world for its excellence and innovation and we look forward to working together in what is sure to be a successful partnership. We believe Nike will be able to support our growth into new markets as well as helping us maintain our place among the world’s elite football clubs.”
Nike brand president, Trevor Edwards, said: “Chelsea is a world-class club with a rich tradition and passionate fans across the globe. The partnership with Chelsea reinforces our leadership position in football. We are excited to help grow the club’s global reach, serving players and supporters with Nike innovation and design.”
Discussing what the deal means for Chelsea Jim Dowling, managing director at Havas Sports & Entertainment Cake, said: " The numbers are big and getting bigger. This is because, peculiar as it sounds given the amount of money that has flowed in to the sport over the past three decades, football is a growth market. If you subscribe to the long term view, Nike's Chelsea deal could come to look like a the most conservative of punts.
"Chelsea have been successful relatively recently, attracting new - and importantly, young - fans. Success drives fandom outside the core markets and this deal is a global one not a local one. Age is a factor because the average age of a Premier League season ticket holder is over 44.
"The other consideration is good old fashioned competition between Nike and Adidas. The German company paid £75m a year for Manchester United's shirt and this new deal puts Chelsea in second place. All eyes will be on the Manchester City renewal, which at its current £20m a year, looks very undervalued set against its closest competitors. "
Discussing the difference between Nike's deal with Man City and Chelsea, MediaCom’s head of sport, Misha Sher, said: "The reason for the big difference between Chelsea and Man City is down to Chelsea’s global fanbase and appeal.
"Manchester City are relatively new compared to more established teams such as United, Arsenal, Chelsea, and Liverpool. They’ve done a great job to build a strong brand and that will continue so long as they have success. Having said that, the four aforementioned clubs have a much bigger fanbase and as such, command bigger dollars from their sponsors."