The 32-year-old, whose current deal was set to expire at the end of the season, had been linked with moves to Real Madrid and Paris St Germain but has opted to stay with the club he joined in 2006.

The paperwork is set to be completed by Tuesday.

The left-back was part of the team that beat Bayern Munich to win last year's Champions League final and has won one Premier League crown, four FA Cups and one League Cup during his time with the Blues.

Cole's decision to re-sign with the club will go some way to appeasing disgruntled fans who have been vocal in their disapproval of manager Rafael Benetiz and the treatment of club legend Frank Lamaprd, who looks set to be leaving Chelsea at the end of the season after being told he won't be offered a new contract.