Archer spent 17 months on the sidelines following elbow and back injuries before returning to international cricket in January this year.
However, he has played only five of Mumbai Indians' 10 matches this season and reportedly underwent a minor operation on his troublesome right elbow last month.
The Ashes series against Australia begins at Edgbaston on June 16th.
"The England & Wales Cricket Board can confirm that fast bowler Jofra Archer will return from the Indian Premier League with immediate effect," the ECB said in a statement.
"Archer has been recovering from right elbow surgery. However, pushing through the discomfort whilst recently playing, hoping it will settle, has proven challenging.
"Therefore, it has been agreed for him to return to the UK for a period of rest and rehabilitation to give him the best opportunity for a full recovery."
Archer will return home this week and begin his rehab with the ECB medical department and his county team Sussex.
IPL organisers said in a statement that Archer's England teammate Chris Jordan would replace him at Mumbai.
"Chris Jordan will join the MI squad for the rest of the season," five-time champions Mumbai said on their Twitter handle.
"Chris replaces Jofra Archer, whose recovery and fitness continues to be monitored by ECB (England and Wales Cricket Board).
"Jofra will return home to focus on his rehabilitation."
In addition to the Ashes, England will also be concerned about the Barbados-born player's availability for their 50-overs World Cup title defence in India later this year.
Jordan made his IPL debut in 2016 for Royal Challengers Bangalore and also represented Sunrisers Hyderabad, Punjab Kings, and Chennai Super Kings in the tournament.
Jordan joins Mumbai for $244,558, IPL organisers added.