Morata spent the second half of last season on loan at the Wanda Metropolitano after joining on an 18-month loan, scoring six goals in 17 appearances.
Atletico confirmed on Saturday the Spain international will return to Madrid and finish that spell this campaign before completing his permanent transfer next year:
Newly appointed Chelsea manager Frank Lampard has made the decision to allow Morata to leave despite the fact the Blues are set to serve a transfer ban this summer and can't register new players.
The deal means Morata's last appearance for Chelsea—assuming he doesn't return—was a match-winning performance in January's 2-0 FA Cup third-round win over Nottingham Forest when he scored both goals.
It was reported at the time of Morata's move back to Madrid that Atletico could make the move permanent for a fee of £48.5 million.
Chelsea will have recovered much of their £60 million investment in the player after he signed from Real Madrid in 2017, with Morata having failed to find much success during his short spell in the Premier League.
ESPN FC's Liam Twomey remarked upon Morata's low standing at Stamford Bridge and the fact Chelsea were willing to sell even though they're unable to sign a replacement through the transfer market:
Lampard presumably has plans in store for 21-year-old Chelsea academy graduate Tammy Abraham, who scored 26 goals on loan at Aston Villa last season. Two of those came against Derby County, whom Lampard managed until he received the call to return to Stamford Bridge as coach.
Chelsea paid tribute to Morata after his planned 2020 exit was confirmed. The 26-year-old leaves England with a record of 24 goals and six assists in 72 appearances for the Blues.
Graham Hunter recently appeared on Eleven Sports and said Morata—who spent time in Real's academy before moving into their first team and eventually joining Juventus—has more to offer:
Atletico have moved early to secure Morata's signature on permanent terms, and he'll look to build on a promising start with the club as he returns to his hometown with a secure future.