Spain striker Diego Costa has formally moved to English Premier League powerhouse Chelsea from Atletico Madrid on Tuesday.

"Chelsea Football Club is delighted to announce Diego Costa has today (Tuesday) completed his transfer from Atletico Madrid by signing a five-year contract," the London club said in a statement on Tuesday.

Chelsea met the buy-out clause for the Brazil-born forward and it may pay a transfer fee of about 55 million U.S. dollars.

Costa, 25, scored 35 goals for Atletico last season as they won the Spanish title and reached the Champions League final, only to lose in extra-time to city rivals Real Madrid after they had defeated Chelsea in the semifinal.