It was feared that Salah would be forced to return home to Egypt to fulfil the military obligation that lasts between one and three years, but he has been given permission to continue his promising career at Stamford Bridge.
The 22-year-old became eligible for military service, which is postponed for students, after cancelling his enrolment in one of Egypt's education institutes.
Salah has made a positive impact since completing an £11million transfer from Basel in January, scoring two goals in six Premier League appearances for the Blues.
The move came after he impressed by scoring in both games when the Swiss club faced Chelsea in the group stage of the Champions League last season.
He has also scored 17 goals in 29 appearances for Egypt and the news that he will not be required for military service enables him to participate in Chelsea's pre-season training camp in Austria.
Meanwhile, the Blues have declined to comment on reports that Didier Drogba will return to Stamford Bridge for the 2014-15 season after signing a one-year deal.