The 22-year-old has signed on an eight-and-a-half-year contract in deal worth 100 million euros ($108 million).
Manchester City are about to find out whether Raheem Sterling has the ability to justify his enormous price tag or is just another over-rated young English footballer motivated purely by his bank balance.
Here is a look at the clubs most likely to give City a run for their money next season.
England forward Raheem Sterling joined Chelsea on a five-year contract from Manchester City, the two English Premier League clubs announced on Wednesday.
Manchester City made Raheem Sterling the most expensive English player in history when they completed a deal for the 20-year-old forward on Tuesday, rubber-stamping an acrimonious end to his Liverpool career.
'Both Joe and I have had words and figured things out and moved on. We are in a sport where emotions run high and I am man enough to admit when emotions got the better of me.'
Images from Saturday's Premier League action.
Now, if he can keep at bay an England attack that might include club mates Raheem Sterling and Mason Mount, Mendy could yet finish the year on another high note, having started it with success in the Africa Cup of Nations.
The tears of England's losing players at Wembley were replicated across the nation on Sunday night, mixed in with disappointment and alcohol, after Italy beat Gareth Southgate's young side in a penalty shootout to win Euro 2020.
English hopes of a run deep into the World Cup took a bit of a bruising on Friday when a lively and high-pressing United States team reduced the youthful stars of their tournament opener to anonymity.
Manchester City reached the Champions League quarter-finals after beating Real Madrid 2-1 (4-2 on aggregate) at the Etihad Stadium on Friday, with scorers Raheem Sterling and Gabriel Jesus taking advantage of errors by defender Raphael Varane.
The match lived up to its billing right from the start
England coach Gareth Southgate acknowledged his side had failed to repeat their early World Cup attacking fluency in their 0-0 draw with the United States, but said success in major tournaments often required such gritty performances.
Images from the English Premier League matches played over the weekend.
UEFA said on Thursday that they will probe the matter and opened disciplinary proceedings against England on the matter.
Images from Wednesday's Champions League matches, between Real Madrid and Paris St Germain, and Manchester City and Sporting CP
English Premier League leaders Manchester City and Chelsea slugged out a magnificent 4-4 draw at Stamford Bridge.
Raheem Sterling's agent has fuelled the fire surrounding the player's contract standoff with Liverpool by saying the England winger would not sign a new deal at Anfield - even for 900,000 pounds a week.
Kevin de Bruyne's first-half penalty and a superb strike by Raheem Sterling after the break earned holders Manchester City a comfortable 2-0 away win at Newcastle United in the weekend's last FA Cup quarter-final on Sunday.
Atletico players accused Manchester City of time-wasting in the final minutes, which the English club denied.
Palace outclass Everton to cruise into FA Cup semi-finals
France hoping Mbappe will be enough to match England's impressive depth
Manchester City forward Gabriel Jesus became the first player to have a goal disallowed by the Video Assistant Referee (VAR) in the English Premier League.
England coach Gareth Southgate's last two tournament near misses were accompanied by criticism of his conservatism in selection but a relatively radical switch to bring in Marcus Rashford and Phil Foden paid off handsomely in Tuesday's 3-0 win over Wales.
Defending champions Manchester City dominated the Professional Footballers' Association's (PFA) Team of the Year announced on Thursday, claiming six out of 11 spots.
Jude Bellingham has become one of the most sought-after signatures in football
We haven't played the best coming into the tournament. There was a lot of talk and speculation about our form but we showed everyone how much quality we have and what we can do," said Saka, whose last major tournament ended with him missing a penalty in the Euro 2020 final shootout.
Manchester City forward Raheem Sterling believes newspapers are helping 'fuel racism' and 'aggressive behaviour' with their portrayal of young black players.
IMAGES from the Euro 2020 round of 16 match played between England and Germany at Wembley on Tuesday.
A summary of Saturday's action in the English Premier League.
The 4-3 win on the night for Manchester City was so nearly 5-3 -- and progress to the last four for City -- but Raheem Sterling's stoppage time effort was ruled out by a VAR review which correctly spotted Sergio Aguero off-side.
Manchester City chalked up yet another victory to maintain their stranglehold of the Premier League title race but pursuers Manchester United and Leicester City both secured important wins to enhance their top-four bids on Sunday.
Manchester City defender Eric Garcia has been released from hospital after he was injured in a collision with goalkeeper Ederson in their 3-0 win against Arsenal, the Premier League club said on Thursday. Garcia, 19, collided with the Brazilian goalkeeper late in Wednesday's game and received treatment for several minutes before being carried off on a stretcher and taken to the Manchester Royal Infirmary Hospital for further tests.
ManchesterCity winger Raheem Sterling has said a first Champions League quarter-final will not be enough and the English side should be aiming to lift the trophy with the talent in their squad.
The winner will be named on August 26, along with UEFA's women's player of the year and Champions League positional award winners, at the Champions League group stage draw in Istanbul.
Images from the English Premier League matches played on Saturday.
That incredible spread of goals has been shared by Marcus Rashford (3), Bukayo Saka (3), Jude Bellingham, Raheem Sterling, Jack Grealish, Phil Foden and Jordan Henderson plus Harry Kane.
Images from the Premier League matches played on Sunday.
Images from the UEFA Champions League group matches played on Tuesday night
IMAGES from the Premier League matches played on Saturday