Chelsea chief executive Peter Kenyon believes Michael Ballack will sign a new contract with the club.

The 32-year-old's current deal expires in June and he will be free to hold talks with interested clubs in January unless he agrees an extension.

The Germany captain allowed his Bayern Munich contract to run out before joining Chelsea on a free transfer in 2006.

But Chelsea have an option to extend the contract for another 12 months.

Kenyon said: "Michael has played a great part for Chelsea and there is no reason for us not to exercise that option."

Ballack has said he would be happy to end his career at Stamford Bridge.

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