"It's very good to be a part of this club," Romeu told the Southampton website on Wednesday. "I was looking for a good club and for something new in my career.
"After spending two years on loan I needed something permanent and a club with a future and I think I chose the right one."
Signed by Chelsea in 2011, Barcelona academy graduate Romeu initially impressed under former manager Andre Villas-Boas but has been out of favour since Jose Mourinho arrived for his second spell in charge at Stamford Bridge.
Romeu, who spent most of the last two seasons on loan at Valencia and VfB Stuttgart, rejoins former Chelsea team mate Ryan Bertrand on the south coast.
"Like Ryan Bertrand we believe we have recruited another Chelsea player with an excellent pedigree but also with lots of potential to develop," said Southampton's director of football Les Reed.
(Reporting by Martyn Herman, editing by Tony Jimenez)
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