This much was disclosed by sources close to the club on Thursday.
The new contract will see Azpilicueta remain at Stamford Bridge for a further 2yrs until June 2024.
This rules out any potential move to Spanish giants, FC Barcelona.
Sources say the new contract was driven by Head Coach, Thomas Tuchel, who was determined to see the Club Captain remain at the club.
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Barcelona had pushed for the player but were reluctant to pay Chelsea’s £7million asking price.
Ultimately, the move has fallen through and, ‘Dave,’ as he is fondly referred to by his teammates, will Captain the club for another few years.
On the other side, Chelsea’s pursuit of Right-back options such as Inter Milan’s Denzel Dumfries and Southampton’s Kyle Walker-Peters, has been put on ice.