A statement from the club was published on their official website on Thursday confirming the move.
"We can today (Thursday) confirm the signing of goalkeeper Eduardo from Dinamo Zagreb," it read.
"The 33-year-old was a part of Portugal’s triumphant Euro 2016 squad this summer and joins the Blues on a one-year contract following two seasons with the Croatian champions.
"Eduardo, full name Eduardo dos Reis Carvalho, played his youth football at Braga where he made his name as a first-team regular and progressed into the national team, making his Portugal debut in February 2009."
Eduardo has 35 international caps in total and will provide experienced cover and competition for Thibaut Courtois and Asmir Begovic.
The player himself expressed his delight at the move, saying that he had no second thoughts about the move.
"Having the opportunity to come to the Premier League and to Chelsea, to such a big club, it is an easy decision to make," he told the club's official website.
"For me this is the best and the most difficult league and it is another level from where I have been until now. So it is a new challenge, at this moment I feel very good, so I am ready for this.
"All the colleagues I have always say the dream is to come to the Premier League, where there are the best clubs and the best players, and the opportunity to come here arrived at this moment.
"I am happy to be here and I hope I meet the expectations people have for me," he added.