The Brazilian is not in Frank Lampard's plans and will instead spend the 2019/20 campaign in La Liga.
Kenedy is out of contract at Stamford Bridge next summer, meaning he is likely to have played his final game for the club.
The 23-year-old spent the last 18 months on loan at Newcastle but didn't do enough to earn a permanent move to St James' Park.
He also made a single appearance for Watford during a loan spell that was cut short in 2016/17.
Kenedy, who has played 27 games for Chelsea since arriving from Fluminense in 2015, had reportedly been keen to leave west London permanently this summer.
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