He scored just six goals in 15 appearances for Milan, the last of which was over a month ago.
Chelsea have an option of extending the loan spell to the entirety of the 2019/2020 season if they pay a fee of €18m according to a statement by Juventus.
There is also an option for Chelsea to buy him out right if they pay a fee of €36m at the end of this season.
The Argentine international reunites with Maurizio Sarri whom he played under at Napoli, a combination that gave the former his best season as player with 36 league goals four seasons ago.
Speaking of his move to Stamford Bridge to the club's website, the former Real Madrid striker said;
When the opportunity to join Chelsea presented itself I had to take it,"
"It's a team I've always liked that has a lot of history, a wonderful stadium and they play in the Premier League, a league I've always wanted to play in.
"I now hope I can give back that trust Chelsea have shown me out on the pitch. I can't wait to start and I hope to adapt as soon as possible."
The future of Alvaro Morata is now expected to be clarified in the last week of the transfer window, with the striker to set to be sold or loaned out for the reminder of the season.
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