There are bonuses on a four-year deal for the re-signed forward.
He left the club two years ago to join the Blues, but they activated his release clause and he is back.
He scored 23 goals in 89 appearances at Stamford Bridge, but he has not been able to duplicate that form at his new club.
He will wear the No 11 shirt for the rest of his life after re-joining the team where he scored 95 goals in 159 games.
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An agreement was reached for the permanent transfer of the Germany international after he was initially set to return to the club on a season-long loan with an option to buy.
He wanted to get regular game time at his old club in order to get into the Germany squad for the World Cup.
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His relationship with Tuchel was said to be an issue, although he was not allowed to leave.
He only started 15 games in the premier league and scored four times.
He wasn't in the squad for the opener.
I'm very happy to be a part of the team again. When we were rookies in the league, I had a great time.
It was a dignified departure for me to leave the club as the club's all-time leading scorer, but I'm looking forward to the future.
I had two great years at the club and were crowned with the title of European champion. Playing in a new league helped me in my career.
I'm looking forward to the new season and meeting the fans again, who means a lot to me."
I want to become the first Leipzig player to reach the 100 goal mark.
Christopher Vivell said, "Timo is a great forward who brings another dynamic to our attack thanks to his profile." We will be even more unpredictable because of his speed and finishing; he will bring our game to another level.
Timmy is a German. He has a lot of experience on the international stage and will be a leader here. There is a lot of quality in our attack and we have a great amount of variety.
Adam Smith is a Sky sports analyst.
He arrived in the league with a lot of expectation. His style of play was similar to that of Egypt's Mohamed Salah, but he struggled to convert chances in front of goal.
The only metric that changed was his strike-rate, which was the only metric that compared favorably to his per-90 statistics.
According to expected goals, Werner should have scored nearly twice as many goals as he did in the two years he was at the club.
The scatter chart below shows how the ratio plays out in the entire division, with Heung- Min Son converting 40 goals from an xG figure of just 25.85.
The xG differential, the difference between the number of goals he scored and his xG, is the worst in the premier league since his debut
The shot map below shows the number of shots he has taken in the league, with points coloured in red indicating easier chances to convert.
He was deployed in numerous positions across the firing line in an attempt to surface his underlying talent, but he failed to deliver while competing against a host of attacking options vying for starting berths
It is hoped that a return to Leipzig will allow the Germany international to return to the form that made him a household name in the German top flight.
The transfer window will open on June 10 and close at 11pm on September 1st.
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