The 18-year-old has less than a year left on his current contract and could depart for a nominal compensation fee next summer if an agreement is not reached.
Bayern Munich have already had multiple offers turned down for the winger, while the player wanted to leave in winter due to his lack of first-team opportunities under former boss Maurizio Sarri.
Now Chelsea are in ‘advanced talks’ with the attacker and are now finalising a new five-year deal worth £200,000 per week and only ‘small details’ prevent the deal from being agreed.
Callum Hudson-Odoi returned to first-team training this week after recovering from the Achilles injury he suffered back in April.
The forward has made 28 first-team appearances for the Blues and was rewarded for his form last campaign with his first senior England call-up in March.
Callum Hudson-Odoi is not expected to make his first appearance under manager Frank Lampard until after the international break.
But the new boss, who is still searching for his first win as Chelsea head coach, has made it clear that Callum Hudson-Odoi is a key part of his plans this term.
Ruben Loftus-Cheek is also injured and is expected to resume training in six weeks, and Frank Lampard is desperate for the injured stars to return to action as soon as possible, but the main problem for the side remains goalscoring.