"I'm looking forward, finally, to having my day in court," Cardinal Pell said.
"I'm innocent of these charges. They are false. "The whole idea of sexual abuse is abhorrent to me."
Cardinal Pell said he had kept Pope Francis regularly informed during the investigation and has spoken to him a number of times in the past week, most recently a day or so ago.
"We talked about my need to take leave to clear my name.
"So I'm very grateful to the Holy Father for giving me this leave to return to Australia.
"I've spoken to my lawyers about when this will be necessary and I've spoken to my doctors about the best way to achieve this.
"All along, I have been completely consistent and clear in my total rejection of these allegations.
"News of these charges strengthens my resolve.
"And court proceedings now offer me an opportunity to clear my name and then return here back to Rome to work."
A Vatican spokesman said the Secretariat for the Economy will continue its work during Cardinal Pell's absence.
"The Holy See has learned with regret the news of charges filed against Cardinal George Pell for decades-old actions that have been attributed to him," the spokesman said.
"Having become aware of the charges, Cardinal Pell - acting in full respect of civil laws - has decided to return to his country to face the charges against him, recognising the importance of his participation to ensure that the process is carried out fairly and to foster the search for truth.
"The Holy Father, who has appreciated Cardinal Pell's honesty during his three years of work in the Roman Curia, is grateful for his collaboration and, in particular, for his energetic dedication to the reforms in the economic and administrative sector, as well as his active participation in the Council of Cardinals.
"The Holy See expresses its respect for the Australian justice system, which will have to decide the merits of the questions raised.
"At the same time, it is important to recall that Cardinal Pell has openly - and repeatedly - condemned as immoral and intolerable the acts of abuse committed against minors.
"He has co-operated in the past with Australian authorities, for example, in his depositions before the royal commission, has supported the Pontifical Commission for the Protection of Minors, and finally, as a diocesan bishop in Australia, has introduced systems and procedures both for the protection of minors and to provide assistance to victims of abuse."
Cardinal Pell will not attent public liturgical events such as mass, the spokesman said.
- AAP