The 22-year-old spent last season on loan with Crystal Palace.
He was one of the most impressive youngsters in the top-flight last season, playing a starring role in helping the Eagles to avoid relegation.
Palace manager Roy Hodgson made no secret of his desire to bring back Loftus-Cheek to his club if the bright prospect were again made available.
He managed to get playing time, starting one game and coming off the bench on others and was solid whenever called upon.
Chelsea have now decided that they could like to include the midfielder in their first-team plans for next season.
This is a bright move.
The youngster has certainly proven that he could go on to become one of the greatest midfielders in English football.
He could even become a key part of the Blues first-team next season especially as the club are likely to have plenty of departures and new signings during the rest of the transfer window.