Chelsea chief executive Peter Kenyon expects Michael Ballack to remain at Stamford Bridge beyond the summer.
The Germany captain's current contract is due to expire in June and, as yet, no talks have taken place over new terms, the PA said.
But the West London club have an option to extend the former Bayern Munich midfielder's deal by an additional 12 months and are keen to retain his services.
Ballack has previously admitted that he would be happy to end his career with the Premier League giants and discussions are set to begin in January.
Kenyon told local newspaper: "Michael has played a great part for Chelsea and there is no reason for us not to exercise that option."
The 32-year-old has made less than 50 Premier League starts for Chelsea after being hampered by a number of injury setbacks during his Stamford Bridge career, although he remains a key part of coach Luiz Felipe Scolari's squad.
Source: Xinhua
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