JT will sign later this week on an extension to his contract which has three years to run. The new deal is expected to increase this by two years with an improved monthly hike in salary to £160k a week.
This deal will ensure that Manchester City will have failed in their attempt to lure the Blues and England skipper away from his spiritual home.
Reports suggest that City were prepared to offer JT £1m a month to move north.
JT will issue a statement to his intention to stay and put to rest all the speculation that have overshadowed the club's two 2-0 pre-season wins so far.
JT's deal comes hot on the heels of Mikel signing on to Stamford Bridge for five years and only last week Florent Malouda nabbed a three-year extension to his contract.