England goalkeeper Tom Heaton has committed his future to Burnley by signing a new contract until June 2018.
Wolfsburg have moved to sway Newcastle away from a move for Bas Dost by claiming the striker would command a fee around the £29million mark.
The 18-year-old impressed during a loan spell at Watford last season and featured 42 times for the Championship club.
He has already been told he will be loaned out again by boss Jose Mourinho this term but his preference is to remain in the top flight.
The England Under-21 international is currently part of Chelsea's pre-season plans, but another loan spell will give him additional first-team experience which he is unlikely to get at Stamford Bridge at this stage.
Chalobah said: "He (Mourinho) has already told me he likes me and he likes what I'm doing, but he reckons another year out is probably the best decision. A loan is probably the best move at the moment.
"Chelsea's where I want to be. It's probably best to play around the same level, in the same league.
"The Premier League is probably where I'll be looking to go this year.
"It's up to me and up to the club to find a place for me where I can get a chance to play, because I don't want to go to another Premier League team and sit on the bench."
Chalobah favours a midfield role, but has been utilised in the centre of defence under Mourinho in the two pre-season matches thus far.
Brazilian midfielder Lucas Piazon, who spent part of last season on loan at Malaga, is also likely to be loaned out by Mourinho.
The 19-year-old said: "Where I want to be is at Chelsea. I came from Brazil to play here. Wherever I will be, I will try to do my best to be at the club next season."