Despite not featuring at all this term, Barkley has been a key figure for Everton in recent seasons, playing 74 of 76 Premier League games in 2015-16 and 2016-17.
Barkley made 150 Premier League appearances for the Merseyside club.
A repeat of Tottenham, who have also been heavily linked with Barkley, snatching Fernando Llorente at the last minute is not an option.
'I think the club decided on this investment also for his contract.
Barkley told the Chelsea website: "I'm overwhelmed, I'm looking forward to it and I'm really excited to get started".
Toffees chief Allardyce has wished the 24-year-old well and is relieved the speculation can now stop. It is thought he is nearing a return to fitness, while the Telegraph further notes that Barkley has been impressed by Chelsea's persistence.
The England worldwide sealed a £15m transfer to Chelsea to become Antonio Conte's first signing of the January transfer window.
Club director Marina Granovskaia added: "Ross is a player we have long admired and are certain he will prove to be an important player for Chelsea".
Speaking ahead of Chelsea's FA Cup third-round tie at Norwich on Saturday, and prior to the deal being confirmed, Conte said: "We are talking about an English player, a young player". He's very strong physically, good technique.
Ruben Loftus-Cheek is now prospering on his season-long loan at Crystal Palace and fans desperately want him to see him in the Chelsea squad next season. Ross Barkley is a Chelsea player, good luck to him.
"He's very young and I think he has a lot of space for improvement".
He now has a great chance to become a key player for one of the biggest clubs in Europe and England.
"He had a bad injury, he had surgery and he hasn't played for seven months".
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At the time, it was thought that Spotify might save tens of millions of dollars in fees by listing directly. They claim that the company doesn't have the right license or compensation to Wixen to stream the songs.
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