The 34-year-old's existing contract was due to run out in June of this year and there was speculation that he could leave the club.
And Lampard said: "From January onwards, I was allowed to look at other options. I don't want to get into all the behind the scenes stuff but at the same time I wanted to get my head down at Chelsea and show that I could still do it, remain fit and contribute.
"Talks with the club had been ongoing, though, and it wasn't something we wanted to throw out there while important games were going on."
With Chelsea interim manager Rafael Benitez's time at the club coming to an end this weekend after their final game of the season against Everton, Lampard denied he wanted to find out who the next manager was before signing a contract.
"I didn't make any enquiries nor were guarantees made to me about who the next manager would be," Lampard said.
"Because we all read the press we are all aware of what might happen and I have the faith that the club will make the right decision. It wouldn't be right for me to say who the next manager should be.
"This is a great club with great players and the idea of certain managers arriving does excite me."
Jose Mourinho is the bookies favourite to replace Benitez and Chelsea's record goalscorer, Lampard, says the Portuguese's CV speaks for itself.
Lampard said: "There's a determination and a drive in Jose Mourinho which stands him out above the rest. He went from Chelsea to Inter Milan and created something amazing. He then went to Real Madrid and won the league.
"If he did come back here or wherever, I know he'd have so much desire to make it work. He would be a great success"