Win VIP tickets
The 22-year-old Ghanaian passed a medical and agreed personal terms with the Barclays Premiership champions this week after Lyons reluctantly agreed to his transfer request. The fee for Essien is believed to be around £26 million.
Essien refused a new contract at Lyons and made no secret of his distress at being refused permission to leave, until Jean-Michel Aulas, the club president, softened in his stance.
Chelsea have been pursuing Essien throughout the summer, although Lyon offered them no encouragement. While there were several meetings between club officials, Lyons and Chelsea turned the negotiations into an unseemly squabble over the player, with Aulas doing much of the verbal jousting.
He accused Chelsea of not taking Lyon seriously, despite them being four-times back-to-back French champions, saying: "The club took us for narrow-minded Frenchmen with a beret and a baguette."
Nevertheless Aulas succeeded in driving up the price from an initial offer of £10 million to a price that matches the club record fee Chelsea paid for Didier Drogba last summer. He had put a price of £31 million, plus a player, on Essien's head, which Chelsea refused to match.
Gerard Houllier, the Lyons manager, described Essien as a player in the same class as Steven Gerrard, Frank Lampard, Michael Ballack and Patrick Vieira. Yet Houllier, appointed this summer, was unable to field Essien in a competitive match as club and player agreed it was in their combined interests to resolve his future. Essien threatened to go on strike and scoffed at the suggestion from Aulas last week that he should sign a new, improved contract.
The breakthrough arrived on Sunday night when Aulas, having bartered Chelsea up to what Lyons considered a fair price, admitted Essien would have to go.
The saga took another, albeit minor, twist when the relevant documentation to allow the deal to be completed was slow in arriving at Chelsea. But with that issue soon resolved Chelsea were able to take their summer spending to £56 million after the captures of Lassana Diarra, Shaun Wright-Phillips and Asier del Horno.
Frank Lampard, Claude Makelele, Joe Cole, Damien Duff, Arjen Robben, Wright-Phillips, Diarra, Geremi and Tiago complete Chelsea's roll-call in midfield
Chelsea confirmed the deal in a statement on their website.
"Chelsea can confirm it has now reached an agreement with Lyons for the transfer of Michael Essien. Michael has also agreed personal terms and passed a medical. The transfer is a club record for Chelsea and we would all like to welcome Michael to the club."
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£23,093 - £56,211
The Office for National Statistics
Newport, South Wales
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.