The Wales whizzkid, 18, has seven appearances for the Blues since arriving from Exeter last year, with hopes of him succeeding where other youngsters have failed by progressing from the club’s Academy.
Chelsea director Marina Granovskaia added: "Ethan has shown great potential and unbelievable maturity since arriving at Chelsea a year ago.
“In this short time he convinced a lot of people with his exceptional quality and mentality and we look forward to watching him develop into a key player for the club over the coming years.”
Chelsea coaches have played Ampadu at centre-back and in midfield during his time at Stamford Bridge.
It has led to a full Wales call-up, with England looking at his talent during his time at Exeter but now missing out.
Ampadu said: “I’m really proud and happy. I’m looking forward to the next five years and all I have got to do now is continue to work hard, and hopefully good things will happen.
"My feet are still on the ground because I have a lot to do.
"My dad will definitely keep my feet on the ground, and my family, and everyone here.
"I will keep my feet on the ground because I know I have got a lot to do, and I’ve only had a small taste of what I would like to achieve.
"I have now got to keep working hard in training, trying to do the right things, and we will see what goes from there.
"Hopefully it will turn into some opportunities, but even if it doesn’t I have just got to keep working hard and hopefully the time will come."
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