Callum Hudson-Odoi has signed a new five-year deal with Chelsea understood to be worth more than £120,000 a week.
The contract ends months of speculation about the 18-year-old England winger’s future.
In January, Hudson-Odoi handed in a transfer request after Chelsea rejected a £35m bid from Bayern Munich.
But the teenager received assurances about his future from new manager Frank Lampard in the summer, and indicated then he was ready to commit his future.
He is set to return to the first team after recovering from an Achilles injury suffered in April.
“It’s been a long wait but it’s done now and I’m really happy about that. I’ve been a Chelsea player since I was eight and this is the right club for me to be at,” he said.
“I’m delighted everything has been agreed and now I’m just looking forward to properly getting back.”