Board Thread:Lore Discussion/@comment-4984687-20140726081704/@comment-189.114.194.136-20140803023736

He returned permanently, as he was free'd from the curse when Hero of Kvatch defeated him in the battle, and before Jyggalag departing, he named the Hero of Kvatch as the new Prince of Madness, Sheogorath.

"His defeat, however, released Jyggalag from his curse. Jyggalag, again free to wander Oblivion in his true form, disclosed his story to the Champion and named him the new Prince of Madness before departing."