England’s transfer beat the previous record of the £200,000 paid by Chelsea to buy Lauren James from Manchester United in 2021.
England scored 74 goals in 163 appearances for Chelsea during her seven-year stay but played only six times this season.
The 28-year-old has joined Tottenham in search of more playing time ahead of the Women’s World Cup this year, having lost her place in the England team.
England, who was part of this year’s European Championship-winning squad but did not play during the tournament, has signed a contract with Spurs until June, 2026.
Tottenham are on a four-match WSL losing streak and have scored 11 goals in nine league games, with eight of those coming in the same match.
Spurs’ new recruit wrote on Twitter: "My next chapter. I’m so excited to join SpursWomen.
"Buzzing to meet up with the girls and get started at this great club. Let’s write some history together!"
Additional reporting from Reuters