Chief executive Peter Kenyon expects Michael Ballack to stay at Chelsea for next season.
The 32-year-old's current contract runs out in June and he has not yet signed a new deal to extend his stay at Stamford Bridge.
However, the Blues have an option to hold on to the Germany captain for an additional 12 months and are keen to do so.
The former Bayern Munich midfielder has previously expressed his desire to end his career at the West London club and talks should begin in January.
Kenyon told The Sun: "Michael has played a great part for Chelsea and there is no reason for us not to exercise that option."
Ballack has suffered a couple of injuries during his time at Chelsea and has made less than 50 starts for the club, but he is still a vital member of manager Luiz Felipe Scolari's squad.
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