Pedro joined from Brighton last summer and made an immediate impact in west London, scoring 15 goals and adding five assists in 35 league appearances during a debut campaign that established him as one of Xabi Alonso's most important attacking options.
Barcelona were reported by The Athletic in June to be interested in the Brazilian, who is already tied to Chelsea until 2033, but journalist Simon Johnson now reports that Pedro is expected to sign an improved deal at Stamford Bridge rather than entertain a move to Spain.
The Athletic adds that Pedro is one of several players Chelsea have no intention of selling this summer, with a number of squad members expected to put pen to paper on new terms over the coming weeks. Chelsea finished tenth in the Premier League last season, and locking down key attacking talent forms a clear part of the club's plans to push back up the table under Alonso.
Elsewhere at Cobham, 20-year-old defender Josh Acheampong has emerged as a target for Crystal Palace, who are exploring a loan move for the England Under-21 international after breaking through at Chelsea last season.
Acheampong, who can play at centre-back or right-back, scored once in 17 league appearances, eight of them starts, and has previously attracted interest from Manchester United, Bayern Munich, Borussia Dortmund, Real Madrid and Liverpool. Despite that pedigree, there is currently no indication Chelsea are willing to let him leave, even on loan.
Palace's interest is directly tied to their sale of centre-back Maxence Lacroix to Chelsea, a deal that has left Pierre Sage's side needing defensive reinforcements after also missing out on Marc Guehi earlier in the year.
Having lifted the Conference League last season and secured Europa League football as a result, Palace are keen to strengthen quickly, though Chelsea's reluctance to sanction any exit for Acheampong — even as they continue to be linked with selling Trevoh Chalobah to Como — suggests any deal will not be straightforward.