Chelsea striker Alvaro Morata will join Atletico Madrid on a permanent deal at the end of the 2019-20 season, the Premier League club have announced.
The 26-year-old is currently in the middle of a two-year loan spell with the LaLiga side and will remain in the Spanish capital upon its completion.
The Spain international scored 24 goals in 72 appearances for the Blues after joining from Real Madrid in 2017.
"We would like to thank Alvaro for his contribution and wish him the best of luck for the future," Chelsea said in a statement on their official website.
Morata was signed by former Chelsea boss Antonio Conte two years ago for around £60million on a five-year contract.
However, despite scoring on his Premier League debut, he failed to find his feet in England with injury and poor form costing him his place in the starting line-up.
Morata returned to Madrid in January on loan and scored six goals in 15 appearances for Atletico in the 2018-19 LaLiga campaign.
Morata took to Twitter to declare himself "happy" to be remaining with Diego Simeone's side.
He said: "Happy. It's official. Now I will have time to return with work and goals all the effort of the club and the affection of the fans. Thank you!!!"
Atletico, who signed fellow forward Joao Felix from Benfica for 126 million euros (£113m) earlier this week, finished second in LaLiga last season.
The Spanish club said in a statement: "Atletico de Madrid and Chelsea have reached an agreement for the transfer of Alvaro Morata as of July 1, 2020.
"The Spanish striker will play at our club on loan this season, as was agreed when he joined Atletico de Madrid in the January transfer window, and the move will become permanent at the beginning of the 2020-21 season."