Graham Potter has been confirmed as Chelsea’s manager on a five-year contract, taking over from Thomas Tuchel, who was sacked on Wednesday.

Potter joins from Brighton after compensation – understood to be about £16m – was paid to release him. He arrived at Chelsea’s training ground on Thursday afternoon to sign his contract after a smooth series of negotiations.

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“I am incredibly proud and excited to represent Chelsea FC, this fantastic football club,” Potter said in a statement on the club’s website. “I am very excited to partner with Chelsea’s new ownership group and look forward to meeting and working with the exciting group of players and to develop a team and culture that our amazing fans can be proud of.

“I would also like to place my sincere thanks to Brighton & Hove Albion for allowing me this opportunity and in particular Tony Bloom and all the players, staff and supporters for their continued support during my time at the club.”

The 47-year-old takes over a team five points off the top of the Premier League and three points off fourth spot. Chelsea confirmed he would take charge of Saturday’s game at Fulham.

Chelsea’s move for Potter unfolded swiftly after Tuchel was sacked in the wake of a Champions League defeat at Dinamo Zagreb and with his relationship with the co-owner Todd Boehly having deteriorated over the summer.

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Positive talks were held with Potter on Wednesday, discussions continued on Thursday and he is involved for the first time as a player or manager with a Champions League team. Chelsea play at home to Salzburg in the competition on Wednesday.

Potter has previously managed Östersund and Swansea as well as Brighton. He lifted the Swedish club into the top flight and led them into the Europa League, and achieved his and Brighton’s highest top-flight finish last season: ninth.

Boehly said: “We are thrilled to bring Graham to Chelsea. He is a proven coach and an innovator in the Premier League who fits our vision for the club. Not only is he extremely talented on the pitch, he has skills and capabilities that extend beyond the pitch which will make Chelsea a more successful club.”