The Ecuador international, 24, had been pushing for improved terms after a trophy-laden season that saw Chelsea win the Conference League and the Club World Cup. His previous deal, signed when he joined from Brighton in 2023 in a then British-record transfer that rose to £115 million, had eight years to run but the club moved to reward him for his performances, reports BBC Sport.
Caicedo is the second player to sign a renewal as part of a deliberate strategy by Chelsea to retain their best performers, with captain Reece James the first to agree new terms. At least one further deal is being negotiated before the end of the season. Cole Palmer was given a similar incentive-based pay-rise early last season, with bonuses tied to targets such as Champions League qualification.
Chelsea regard Caicedo as one of the best midfielders in the world and he is among the club's designated captains. During the international break, he was asked whether a move to Real Madrid might interest him. "I'm focused on my club right now. I want to be a legend," he said.
The deal comes as Chelsea approach the summer transfer window in a strong position, with a settled core of key players now committed to long-term contracts. Caicedo has been central to the club's midfield since his arrival, and his renewal removes any uncertainty over one of the squad's most important players.