The move to England's Women's Super League comes after the 26-year-old announced she would not return to Perth Glory in the W-League next season, where she'd split her time with the Chicago Red Stars in the National Women's Soccer League in the United States.
“I am excited to join the Chelsea Football Club and challenge myself in a new league," Kerr said. "Chelsea is a prestigious club who feel like a great cultural fit for me. Their success on the pitch and commitment to women’s football were important factors in making this decision."
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The signing is a huge coup for the English club, with the star striker winning five consecutive golden boots across the NWSL and W-League and holding the record for top goal scorer in both competitions.
Kerr's transition to Europe was long speculated but delayed by Football Federation Australia announcing her as the first female marquee player before the 2018-19 season and the World Cup.
“I am so grateful for my time playing in the NWSL and W-League, and for the incredible opportunities I’ve experienced," Kerr said. "I want to thank my team mates and the coaches, I have grown so much for playing both in the US and Australia and I would not be where I am without the support."
"It’s going to be a new challenge and experience, and I think it’ll only better me as a footballer. The opportunity to go to Europe to play, plus continue to play with Matildas as we look to Tokyo, it’s pretty exciting."
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