It has been reported that the 18-year-old, who has been a long-term target for Bayern Munich, has decided to sign a five-year extension worth £100,000-per-week with the Blues.
"I think agreed would mean signed so we're not quite there but what's very clear is the club are working towards that," Lampard said about talks to renew Hudson-Odoi's deal.
"Talks moved on very well in the last week or two but it's not done yet.
"The one thing that's clear to me is I want to keep him here. He's a player we cherish. Players who come through the academy are the present and the future of the club so we're doing everything we can to get there. I hope it's news to be confirmed soon."