Early murmurs suggested that Chelsea may have had to buy out the entirety of the 47-year-old's five-year contract, which would've cost a world-record fee of around £50million.
However, The Athletic report that Todd Boehly has shaken hands on a severance package that isn't determined by the remaining four-and-a-half years on Potter's deal.
The ordeal has been costly, though, after paying Brighton £22m to lure Potter away from the Amex Stadium earlier this season.
He oversaw just seven wins in 22 Premier League games as Chelsea slipped from sixth to 11th under his watch.
Potter leaves Stamford Bridge with the west London giants 12 points off the top four with 10 games to play.
Chelsea are no strangers to paying sizable fees to part ways with head coaches earlier than expected.
In 2018, Roman Abramovich handed Antonio Conte around £25m to terminate his contract. But avoiding a similar outcome with Potter will come as a financial boost.
Chelsea have confirmed that Bruno Saltor will remain at the club as interim head coach after joining alongside Potter from Brighton.
But co-controlling owners Boehly and Behdad Eghbali will immediately search for their successor for the summer, if not earlier.
"On behalf of everyone at the club, we want to thank Graham sincerely for his contribution to Chelsea," the duo said in a joint statement.
"We have the highest degree of respect for Graham as a coach and as a person.
"He has always conducted himself with professionalism and integrity, and we are all disappointed in this outcome.
"Along with our incredible fans, we will all be getting behind Bruno and the team as we focus on the rest of the season.
"We have 10 Premier League games remaining and a Champions League quarter-final ahead.
"We will put every effort and commitment into every one of those games so that we can end the season on a high."
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