United have cut their losses on the 24-year-old, who has failed to live up to his price tag ever since a £73 million move from Borussia Dortmund in 2021.
Sancho has not played a league game for United since posting on social media that he had been made a “scapegoat” for poor performances just under a year ago.
But he shone during a loan spell back at Dortmund during the second half of last season, helping the German giants reach the Champions League final.
Sancho’s arrival adds to Chelsea’s bloated squad, but one of those outcasts by new boss Enzo Maresca has found a new home as Sterling moved across London to Arsenal.
The England international previously worked with Gunners’ boss Mikel Arteta during their time at Manchester City.
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