Mohammed Salah moves to Fiorentina on loan as part of the deal, while Andre Schurrle has been sold to Wolfsburg, to make space for the 26-year-old.
A tweet from the Bundesliga club confirmed the move, saying: “Finally – pen has been put to paper! @Andre-Schuerrle makes the move from Chelsea to the Wolves. Contract until 2019.”
The Germany international has signed a four-year deal and will be picking up £85,000 a week at the Bundesliga club.
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