The 18-year-old has joined the Blues following a successful trial at the club.
Traore has signed a four-and-a-half year contract with Chelsea.
The youngster has 10 international caps for Burkina Faso and is expected to feature in next month’s World Cup qualification play-off against Algeria.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.