Beach arrives in west London to join up with the Academy side for the 2022/23 season from Southampton down on the south coast.
The 18-year-old and Wales international won the U18s Premier League South title with the Saints last season, before falling to defeat to Manchester City in the National final.
Jim Fraser, Chelsea's associate head of youth development and head of young recruitment, is thrilled with the deal even though he won't be playing for Thomas Tuchel's team anytime soon.
We are thrilled to welcome Eddie to the club, Fraser said on the official Chelsea website.
He will be a part of our development group for the upcoming season and is a talented goalie with good potential.
After reaching an agreement on a price with Southampton last week, Chelsea is thought to have outbid other clubs for the very promising teenager.
Posh manager Grant McCann expressed his satisfaction in reaching a deal with Chelsea, saying: "Lucas enjoys a stellar reputation at Chelsea.
"He is strong, excellent at stopping shots, aggressive at receiving crosses, and skilled with his feet.
"I must give huge thanks to Carlo Cudicini and Chelsea for trusting us in developing Lucas further and we can’t wait to work with him."
Chelsea's Academy is set to be fully supported under the Club's new ownership.
As stated by Nizaar Kinsella: “Neil Bath and the Academy will be massively backed by Todd Boehly. Boehly has already been at training games that the Academy has been playing.
"They’ve been signing all the targets that Chelsea wanted.”
Boehly, co-controlling owner, Chairman and interim sporting director of Chelsea, confirmed his intentions for the Blues following the confirmation of the board's restructure, which revealed Marina Granovskaia's departure.
He said: "As custodians of Chelsea FC, we now begin executing our long-term vision and plan for the Club, creating an outstanding experience for its passionate, loyal fans, and continuing to challenge for top honours in line with Chelsea FC's decorated history.
"Working together, side-by-side, we are firmly committed to winning, both on and off the pitch. For us, that effort has begun."
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