The ex Atletico Madrid star is set to join up with plenty of former teammates at Stamford Bridge.
Falcao was one of the most feared strikers in world football before that, with outstanding goalscoring records at Porto, Atletico Madrid and Monaco, as well as for his international team.
Chelsea FC (@ChelseaFC) July 3, 2015
However, the Blues will be hoping the presence of former Atletico teammates Thibaut Courtois, Filipe Luis and Diego Costa can help Jose Mourinho encourage the 29-year-old to find his form again.
Chelsea were one side who suffered at the hands of his prowess in the past, as the Blues lost 4-1 in the European Super Cup match against the La Liga side in 2012, with Falcao scoring an impressive hat trick.
As part of the move, Croatian midfielder Mario Pasalic will head to Monaco on loan for the season.
What price United rue they choice to pass on the Colombian?
It would have been hard for Louis van Gaal to justify an expensive purchase of the striker after his campaign, with Falcao failing to score since January.
But though he certainly looked low on confidence in the later months of the campaign, the forward is still an immensely talented natural goalscorer, and he will have benefitted from a proper pre-season this summer, having rushed back last year to recover from the cruciate ligament injury he suffered in January 2014.
Chelsea appear to have learned from their mistake with Fernando Torres, opting for a loan rather than a big money purchase for a player that was exhibiting some loss of form after a major injury, but with the Blues set to be among the title favourites once more next season, Falcao may be to eased into matches alongside his former strike partner.
If the forward approaches even 75% of the ability he showed before, Chelsea will have added one of the best strikers in the world to their squad.