The Turkish giants announced on its official media channels that the Spaniard has been released from his loan agreement in exchange for a €5m compensation fee.
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Galatasaray's official statement read:
"The contract between professional footballer Alvaro Borja Morata Martin, his club AC Milan SpA and our club has been terminated by mutual agreement.
"Under the agreement reached, AC Milan SpA will pay our club compensation of €5,000,000. Furthermore, the player has waived his claims amounting to €651,562."
Former Juventus striker Morata is now expected to join Cesc Fabregas' Como as a free agent.