Higuain joined the Blues temporarily in the January transfer window but Chelsea had the option to extend the loan deal for another season for €18m or purchase him outright for €36m.
With Chelsea opting not to sign the former Real Madrid striker permanently, he will now return to parent club Juventus, where he will be reunited with Maurizio Sarri, who brought him to Stamford Bridge.
Sarri returned to Italy with Juventus after just one season in England, guiding Chelsea to a third place finish in the Premier League and winning the Europa League.
Alongside Higuain, Chelsea confirmed the exits of four other players including club captain Gary Cahill, goalkeepers Rob Green and Eduardo as well as academy graduate Kyle Scott.
Higuain scored five goals in 14 Premier League appearances and also lifted the Europa League following Chelsea’s victory over Arsenal in Baku.
Chelsea paid tribute to Higuain on their official website with a statement that read: “Gonzalo Higuain joined Chelsea on loan from Juventus in January. He was reunited with Maurizio Sarri after their successful time together at Napoli.”
“Higuain made his Blues bow in an FA Cup win over Sheffield Wednesday, and opened his account with two superbly-taken goals the following weekend against struggling Huddersfield.”
“He netted three more times before the expiry of his loan, all sharp finishes that highlighted his natural ability in front of goal. Fulham, Burnley and Watford were his victims, and he more than played his part in our eventual third-placed Premier League finish.”
“With Olivier Giroud leading the line in the Europa League, Higuain’s involvement was largely limited to domestic competitions, but he leaves having added another winners’ medal to his extensive collection after victory in Baku.”
The future of on-loan Real Madrid midfielder Mateo Kovacic is however shrouded in doubt after Chelsea refused to include his name in the list of exiting players.