Buried deep in the Guardian's report on Chelsea's efforts to sign Alvaro Morata, which we covered earlier, is the off-hand mention that Chelsea have let Pato and Falcao go already, ahead of the official expiration of their loan contracts on June 30. The newsworthiness of these obvious moves is somewhat debatable, which is perhaps why they decided to just toss them in there as minor items.
Chelsea have prioritised his arrival having released Radamel Falcao and Alexandre Pato back to their parents clubs, Monaco and Corinthians respectively, after underwhelming loan spells. Loïc Rémy is also likely to depart, while Atlético Madrid have not given up hope of re-signing Diego Costa. The London club will resist that interest.
All of that has been our baseline assumption since the end of the season. Here's the Mail running a similar story, but attributing the moves to Conte himself. Either way, releasing Falcao and Pato are obvious and expected moves.
Pato himself still seems to be holding out hope of a positive resolution, but his agent revealed a couple weeks ago that the only thing they're hearing from Chelsea is silence.
"Chelsea have not given me or the player any information on the future of Alexandre Pato. We received news that Mr. Conte is reviewing the players in the squad for now."
-Gilmar Veloz; source: Goal
Sorry, Duckie, it's not happening.