The Belgian international, who enjoyed a successful season in the Bundesliga last term while on loan at SV Werder Bremen, has signed a five-year contract with the Wolves and will wear the No14 shirt this season.
"It was clear from the start that Wolfsburg would be the first team I talk to if Chelsea gave me permission," said De Bruyne. "That's why I'm very happy that this transfer has been completed. Klaus Allofs and Dieter Hecking are building a very good team at VfL with a lot of potential. I want to play my part, make sure we continue to be successful, and return to the international stage."
"Kevin is a player with exceptional qualities," added Wolves' coach Dieter Hecking. "I am very happy he's decided to come to Wolfsburg. I had a very good feeling after our first talk with him. He is convinced by our ambition."
De Bruyne displayed his talent on a weekly basis for Bremen last season, making 33 appearances and scoring 10 goals, including one against Eintracht Frankfurt on Matchday 33 of the 2012/13 season that kept Bremen in the division.
The 22-year-old was signed by Chelsea from KRC Genk in January 2012 and loaned back to the Belgian club for the remainder of the 2011/12 campaign, before moving to the Weserstadion.