The move may be considered controversial given Palace had to withdraw Chalobah at short notice from their 1-0 FA Cup win over Stockport County on Sunday.
Palace manager Oliver Glasner initially described the situation as a “contractual issue” before further explaining on Tuesday: “He wants to stay here but it’s a decision Chelsea can take.”
Chalobah was a regular starter at Selhurst Park, making 14 appearances over his four-and-a-half month spell in south London.
The central defender was previously considered surplus to requirements at Chelsea and trained away from the first team in a group nicknamed ‘the bomb squad’, a group of a dozen players unwanted by Chelsea, which included England internationals Raheem Sterling and Ben Chilwell.
Chelsea wanted about £25m to sell Chalobah in the previous three transfer windows.
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