The Brazil international called time on an eight-year stay at the Parc de Princes when his contract ended this summer.
Silva won 23 trophies during his time in France, which included seven Ligue 1 titles, and narrowly missed out on the Champions League to Bayern Munich in Lisbon this month.
The Blues conceded 54 Premier League goals last season - the worst among the traditional top six teams in the division, and the signing of Silva will help fix Chelsea’s porous defense.
Moments after Chelsea confirming the signing of the veteran defender, the club’s director Marina Granovskaia admitted that Chelsea are excited to sign Silva and insists his experience will complement Chelsea’s young team.
“We are delighted to be able to add a player of Thiago Silva’s proven world-class credentials to our squad,” she told the club’s official website.
"Having performed at the highest level for many years, we have no doubt his experience and quality will complement the many exciting talents we already have here.”
Silva revealed he is also excited to join Chelsea and he is eager to start playing at Stamford Bridge.
“I am so happy to be joining #Chelsea. I am delighted to be a part of Frank Lampard’s exciting squad for next season and I’m here to challenge for honours,” the Brazilian said.
“See you soon Chelsea fans, I look forward to playing at Stamford Bridge very soon.”
He becomes Chelsea’s latest addition of the summer after Hakim Ziyech, Timo Werner, Xavier Mbuyamba, Ben Chilwell and Malang Sarr, with the West Londoners hoping to add Bayer Leverkusen’s Kai Havertz in the coming days.