The Colombia international has not featured for the west London club since October due to a thigh injury and has been omitted from the squad list following the close of the transfer window on Monday.
It means that the striker will not be available for the last 16 clash with Paris Saint-Germain in Europe’s elite club competition.
New signings Alexandre Pato and Matt Miazga have both been included in the Champions League squad list.
Falcao has struggled to make an impact at Chelsea after moving to Stamford Bridge from Monaco on loan until the end of the season in the summer.
The former Porto and Atletico Madrid forward joined the Blues after a disappointing campaign at Manchester United last season.
Chelsea are now preparing for their crunch Premier League clash with Manchester United at Stamford Bridge on Sunday.
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