Cole has two years left of his current contract but Manchester City and Barcelona have already been linked with a move for his services.

Chelsea are understood to be in the process of working on new deals for some of their squad even though they are yet to announce who their new manager will be next season.

AC Milan's Carlo Ancelotti remains favourite to replace interim coach Guus Hiddink but the club are unlikely to make any announcement until after the FA Cup final at the end of the month.

Cole has enjoyed one of his best season's at Stamford Bridge and he remains the club's only recognised left-back after the club sold Wayne Bridge to Manchester City in January's transfer window.

Chelsea are hoping that an offer of a five-year deal with a pay-rise from £80,000-a-week to just over £100,000-a-week will be more than enough to keep the England international.

Injured Joe Cole is another Chelsea player expected to be offered a long-term contract but there are doubts over the futures of Michael Ballack and Didier Drogba.

Much will depend on who replaces Hiddink as coach. The Dutchman has already admitted to having second thoughts about leaving the club but remains intent on returning to his full-time post as Russia coach after the cup final against Everton.

Ancelotti has yet to agree to takeover from Hiddink but it now appears it is only a matter of timing.

Ancelotti is also understood to want Filippo Galli as one of his assistants but the Blues are reluctant to make wholesale changes to the backroom staff.

Galli is currently one of Ancelotti's coaching team at AC Milan and Chelsea are likely to agree to his appointment in order to get their man.

However, there will few other changes to the Chelsea staff. Unlike Ancelotti, Galli is fluent in English and has experience of English football after spending a season under Gianluca Vialli at Watford towards the end of his playing career.

But it is unlikely that Ancelotti's other assistant, Mauro Tassotti or goalkeeping coach Villiam Vecchi, will join him.

That means Ancelotti will work alongside Wilkins and current goalkeeping coach Christophe Lollichon. However, Paul Clement is certain to return to his old role with the reserve team.

Meanwhile, Paolo Maldini has urged Ancelotti to stay with AC Milan. Maldini, who has played for Milan for the last 25 years, says the entire squad want Ancelotti to remain at the San Siro.

"We are all hoping Ancelotti will stay," said Maldini. "With him in charge, the group has been really good.

"We have won so many titles and our quality of life with him has been great. But in order to go forward, there needs to be three parties that want it: the players, the coach and the club."