Chelsea have signed Brighton midfielder Moises Caicedo for a British-record fee of £115m on an eight-year contract.

The London club will reportedly pay an initial £100m, plus £15m in performance-related add-ons.

There is an option of a further year in Caicedo's contract and Brighton will have a sell-on clause that has been described as "significant" as part of the deal.

On completing his move to Chelsea, Caicedo said: "I am so happy to join Chelsea! I am so excited to be here at this big club and I didn’t have to think twice when Chelsea called me, I just knew I wanted to sign for the club. It’s a dream come true to be here and I can’t wait to get started with the team."

Co-sporting directors Laurence Stewart and Paul Winstanley said "Moises has proved himself as a standout player in European football over the past 18 months, and we are thrilled to add him to Mauricio Pochettino’s squad. 

"Moises possesses a rare midfield skill set and is a player we've been targeting for some time. We believe he will make a significant impact at Stamford Bridge this season – and in the years ahead."

Access24 reports that Liverpool agreed a £111m deal to sign Caicedo last week but the move fell through when the 21-year-old informed the club he intended to join Chelsea.

The Colombian had been expected to travel to Liverpool for a medical on Friday after Jurgen Klopp's side had a bid accepted by Brighton following a midnight deadline for bids on Thursday.