The highly rated midfielder arrives at Molineux as part of a three-year deal with the option for a further year.
Saville is a product of the Chelsea Academy, having joined the Blues in 2004.
The 21-year-old turned professional in 2010 and after impressing in the youth team and reserves was rewarded with a three and a half year contract in 2012.
During his time at Stamford Bridge Saville enjoyed loan spells at Millwall and, most recently, Brentford where he helped the Bees to promotion from Sky Bet League 1, featuring 40 times for the Greater London side.
Head Coach, Kenny Jackett, believes Saville will be a great addition to his squad:
"He’s a very good, exciting, attacking midfield player," explained the manager before adding: "He had a very good season at Brentford last season and formerly, as a younger player, was on loan with me at Millwall.
"He is capable of doing a little bit of everything; he can compete, he can tackle, he can pass and he has the ability to get a shot in.
"At just turned 21, I think he’s a great addition to our squad, I think he’s the right age, he’s a good player now but he’s going to improve in the future and really give us terrific options in our midfield area."
Head of Football Development and Recruitment, Kevin Thelwell said: “We’re delighted to have recruited George on a permanent deal.
“We’ve known about him since he was 15 years of age and participating in England trials with Zeli Ismail and Liam McAlinden.
“He played virtually every game for Brentford last season as he helped them to automatic promotion and he was certainly one of the best players we faced in League One."
George will train with the squad for the first time on Thursday and should be available for Saturday’s home game versus Blackburn Rovers (Saturday, August 30, kick-off: 3:00pm).
will bring you an in-depth interview with the new signing on Thursday.