Sarri would be the 12th managerial appointment by Chelsea, permanent or otherwise, since Abramovich acquired the club in 2003 and they have not come or gone cheaply. His future has looked uncertain with Chelsea failing to qualify for the coming season's Champions League after finishing fifth.
Conte leaves with the best win percentage 65.1 per cent of any of Chelsea's managers in the Premier League era.
"We wish Antonio every success in his future career".
Morata enjoyed two successful seasons in Juventus before being recalled to Real Madrid, but his former side would prefer cash for Higuain rather than a swap deal.
It's always been known that Conte would be dismissed with Sarri the favoured replacement, yet it was somehow allowed to get to the stage where the former Italy coach took the first three days of pre-season training before being dismissed. In the title winning season, the club set a then-record 30 wins in a 38-game Premier League season, as well as a club-record 13 consecutive league victories.
Sarri was replaced by Carlo Ancelotti as Napoli manager last month but remained at the club as a compensation settlement between the 51-year-old and the Serie A club was agreed. Conte's relationship with Chelsea's hierarchy was strained after disagreements over their transfer policy last season.
The former Empoli boss is not known as a big spender which might fit with the slightly more modern Chelsea era of tighter spending. Sarri and Higuain worked together at Napoli.