The 22-year-old has joined the Blues in a deal worth €24.5m (£20.6m) and has committed his future to Enzo Maresca's side until the end of the 2030-31 campaign.
It was reported earlier on Tuesday that Jorgensen had already completed his medical with Chelsea in the USA, as he prepares to link up with Maresca's squad straight away.
Jorgensen becomes the seventh new face to arrive in the Stamford Bridge ranks this summer, following Tosin Adarabioyo, Caleb Wiley, Marc Guiu, Omari Kellyman, Renato Veiga and Kiernan Dewsbury-Hall to West London.
"This move is a dream come true. I am very excited to have signed for Chelsea, one of the biggest clubs in the world. I can't wait to get to know everyone and to start playing with all my new teammates," the goalkeeper told the official Chelsea website after his move was confirmed.
Jorgensen arrives after breakthrough Villarreal campaign
Jorgensen's switch to the Premier League giants brings an end to his nine-year spell in the Villarreal jersey, having joined the Yellow Submarine from Mallorca in the summer of 2015.
Before making his senior debut for Villarreal, Jorgensen clinched a Europa League winners' medal, having made the bench for the Spanish giants during their triumphant run in the 2020-21 competition.
The 22-year-old subsequently appeared for the seniors for the first time in a 2021-22 Copa del Rey tie, but he did not establish himself as Villarreal's number one goalkeeper until the 2023-24 campaign.
Last year, Jorgensen played 36 games in La Liga - keeping six clean sheets and conceding 63 goals - but he only featured once in the Europa League, where the veteran Pepe Reina was the regular shot-stopper.
Born in Sweden, the 6ft 3in goalkeeper previously represented the country of his birth at youth level before switching allegiance to Denmark, and he has won 11 caps for the Red and Whites' Under-21s.
What will Jorgensen's signing mean for Chelsea's other goalkeepers?
To describe Chelsea's goalkeeping department as bloated would be an understatement, as with Jorgensen now in the ranks, there are a staggering seven senior shot-stoppers vying for minutes at Stamford Bridge.
Jorgensen will likely find himself training alongside Djordje Petrovic and Robert Sanchez for the most part, as the duo competed for the right to wear the gloves last season, while Kepa Arrizabalaga turned out for Real Madrid on loan.
The Spaniard now seemingly has the green light to depart thanks to Jorgensen's arrival, although it is unclear what his signing will mean for Marcus Bettinelli, whose home-grown status makes him a valuable asset.
Twenty-year-old Gabriel Slonina and 21-year-old Lucas Bergstrom will likely go out on loan again, although Chelsea supposedly still have high hopes for the former, despite pursuing Jorgensen.
Jorgensen could make his debut for Chelsea against Club America on Wednesday, as the Blues bid to earn their first pre-season win at the third attempt following a 2-2 draw with Wrexham and a harrowing 4-1 loss to Celtic.