Ukraine striker Andriy Shevchenko's Chelsea nightmare has ended after the London [Images] club struck a deal for him to rejoin AC Milan.

"Chelsea have agreed terms for Andriy Shevchenko to return to AC Milan," the Premier League club said on its website on Saturday without giving any details.

Chelsea bought the Ukrainian from Milan in 2006 for a club record fee, which British media estimated was just under 30 million pounds ($56.04 million), but he struggled for form and fitness during two difficult seasons in London.

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New Chelsea coach Luiz Felipe Scolari [Images] did not pick him for their first Premier League match of the campaign last weekend, prompting Milan to launch the latest in a string of attempts to bring the Ukraine international back to Italy [Images].

Milan chief executive Adriano Galliani was overjoyed to re-sign the 31-year-old, who spent seven successful seasons at the San Siro.

"After a series of frenetic phone calls during the whole day, we reached an agreement with Chelsea. Tomorrow he will be in Milan, Monday he will undergo a medical and then sign a contract," Galliani told Milan's television channel.

"We have managed to bring home a player who has scored the most goals in our shirt in the last 50 years."

UEFA [Images] CUP

Galliani had said earlier this week that talks over Shevchenko had stalled with Milan wanting a loan deal but Chelsea only interested in a permanent transfer.

The details of their eventual agreement remain confidential, Chelsea said on their website.

After buying Ronaldinho [Images] from Barcelona at the start of the close season, Milan had said they would not bring in any more players.

However, an injury to Marco Borriello, Alexandre Pato's stuttering form for Brazil [Images] at the Olympics [Images] and Filippo Inzaghi turning 35 have made the signing of another striker necessary.

"I have heard from Andriy about 48 times in the last three hours. Andriy made a mistake in leaving and I think after two years he has understood that this is his home," Galliani added.

"Now he has made economic sacrifices but at this point what counts is that he has come back to us."

Shevchenko won the 2003 Champions League and the 2003-04 Serie A title with the Rossoneri but rejoins Carlo Ancelotti's side after they suffered a below-par season last term.

The holders were dumped out of the Champions League by Arsenal [Images] in the first knockout round and finished fifth in Serie A, meaning they must play in the UEFA Cup this season.

"I believe Milan are the only club in the world to have three Golden Ball winners in the team," Galliani said, referring to European Footballer of the Year winners Ronaldinho, Kaka [Images] and Shevchenko.

Milan begin their Serie A campaign at home to promoted Bologna next Sunday.