The England midfielder and Blues all-time leading goal scorer has rejected a move to LA Galaxy after finally agreeing a deal to stay at Stamford Bridge for one more season
Frank Lampard has agreed a one-year contract to stay at Chelsea next season, Goal can confirm.
The Blues' record goalscorer had been in a stand-off with the club for the last two years but has now agreed to stay at Stamford Bridge as he prepares to re-unite with former manager Jose Mourinho next season.
Lampard, whose existing deal expires this summer, was the subject of interest from clubs across the world and came close to joining MLS side LA Galaxy before Chelsea finally opened talks over a 12-month deal.
Those discussions have gathered pace in recent weeks and an agreement has now been reached, and an official announcement is expected before the end of the Premier League season on Sunday.
Chelsea supporters have made clear their desire for the 34-year-old to stay at the club after 12 years in west London during which he has scored 203 goals, overtaking Bobby Tambling's scoring record in last Saturday's win at Aston Villa.
The anticipated return of Mourinho is understood to have been a decisive factor in Lampard's decision to sign a new deal, with the midfielder also expected to accept a pay cut.
The England international, who will captain Chelsea in Wednesday's Europa League final against Benfica in Amsterdam due to John Terry's injury, feared he was being driven out of the club.
But he has gone on to make 48 appearances for the Blues this term, scoring 17 goals, and forced the club into a re-think, just as they did when Ashley Cole signed a one-year extension in January.