The Blues’ assistant first-team coach will work with Gareth Southgate on a temporary basis before committing fully at the end of the season.
And Starsport understands Antonio Conte is not not planning to replace him.
Southgate has admitted he is over the moon to get the 46-year-old on board.
“We have worked very closely for three years”
He said: “I am delighted to have Steve as my assistant manager.
“We have worked very closely for three years and I have upmost respect for the way that he works, his professionalism and the detail of his preparation.
“Our aim at the start was to encourage a young England team to play in a certain style and to develop a winning mentality; I think we certainly got a long way down the road to doing that with the U21s.
“The challenge with the seniors is a greater one but Steve’s experience of working with elite players and coaches at Chelsea means he knows what a world-class team needs to look like.
“I’d like to thank Chelsea for allowing Steve to join up with us over the last three years.
“It’s great that Steve is able to work with us on the March camp but getting him on a full-time basis is very important and I was more than prepared to wait until May for that to happen.
“If we want to be successful then we have to employ the best people and, for me, Steve is the best.”