The move may be considered controversial given Palace had to withdraw Chalobah at short notice from their 1-0 FA Cup win over Stockport County on Sunday.
Palace manager Oliver Glasner initially described the situation as a “contractual issue” before further explaining on Tuesday: “He wants to stay here but it’s a decision Chelsea can take.”
Chalobah was a regular starter at Selhurst Park, making 14 appearances over his four-and-a-half-month spell in south London.
The central defender was previously considered surplus to requirements at Chelsea and trained away from the first team in a group nicknamed ‘the bomb squad’, a group of a dozen players unwanted by Chelsea, which included England internationals Raheem Sterling and Ben Chilwell.
But Chalobah has been reassured that he will play at Chelsea upon his return after having a conversation with sporting director Paul Winstanley before the option was exercised.
Chelsea believe he will re-acclimatise to west London more quickly than any new signing would given his connection to the club.
However, Chalobah’s long-term future beyond the summer remains in doubt as Chelsea have made him available for about £25m in the past three transfer windows and are likely to allow him to leave permanently in the summer.
Josh Acheampong, 18, continues to be considered a first-team player after his recent breakthrough into the senior squad.
