The 19-year-old, who enjoyed two loan spells with Rovers last term, has returned to Ewood Park on a season-long loan.
Kane initially arrived for a month during Gary Bowyer's first spell as caretaker manager last January and impressed enough to return on loan in March, playing a key role at right-back for the remainder of the 2012-13 season.
After taking over the reins on a permanent basis earlier this summer, new boss Bowyer was eager to secure the services of the young Chelsea ace for a third time.
“First of all we’ve got to thank Chelsea once again, because they’ve been more than accommodating," said the Rovers manager.
"With the new manager coming in, we were waiting to see if Todd was going to be part of his plans, but they see the advantage of him coming out and playing in the Championship again for a full season.
“Todd kicked on massively when he came and joined us last time. On the back of his performances here, he earned himself a new contract at Chelsea and rightly so. We’ll be looking for him to come and make the same impact as he did last season.
“He’s an infectious character, he’s a great footballer and we’re delighted to have him, because he’s the right type of person to have on board and he cares about the club, which is important."
Kane becomes Rovers' fourth summer signing and Bowyer believes the Ewood faithful will welcome his return.
“He’s an all-action type player and I think the fans can relate to that," added the Rovers boss.
"With the additions of Alan Judge, Chris Taylor and Simon Eastwood, he fits in with that mould that we’re trying to attract and I’m sure he’ll be looking forward to the prospect of playing regular first-team football.”
The defender's loan will run from July 1st to May 31st, he has permission to play for Rovers in both the Capital One Cup and the FA Cup.