The 18-year-old has agreed a deal until 2019 and will officially link up with manager Emma Hayes’s side in January, when the transfer window opens.
Cuthbert has enjoyed a remarkable 2016. After joining Glasgow City she went on to be the club’s top goal scorer and was named Player of the Year en route to collecting a Scottish Women’s Premier League winners’ medal.
‘This is a very exciting move for me and one which I believe will benefit my career greatly,’ she said.
‘I had a fantastic season with Glasgow and want to thank them for everything they did for me but when Chelsea came knocking it felt like something I couldn’t turn down.
‘I know it is going to be a big step up but I believe in my ability and will give everything to help the team succeed and win trophies.’
Cuthbert’s impressive form domestically also saw her earn her first two senior international caps for Scotland.
Prior to joining Glasgow, Cuthbert began her career with SWPL side Rangers and in 2014 was named as the league’s Young Player of the Year.
Chelsea Ladies manager Emma Hayes said: ‘I’m am so excited about this signing. She’s one for the future but with the ability to make an impact in the here and now.
‘We want to put best with best. Erin will be the youngest member of our squad, yet is fully capable of playing in our first team on a regular basis. That’s how much trust we have in her.
‘We’ve got to develop her, but her game intelligence and decision making will ensure she finds ways to get into this team.
‘When we put her with the very best players, I’m excited to watch her grow. If she puts the right work in and learns from players around her, she will go on to be one of the top players.’
The Scottish teenager becomes the third player to join the club since the end of the season after Norway captain Maren Mjelde agreed terms with the club in November, and Swiss international Ramona Bachmann completed her move on Tuesday.