The People says Chelsea want Cahill to sign a new contract before the season starts.
The central defender, 28, is being awarded an extension following a great start to his career in west London.
Cahill arrived from Bolton in a £7million switch in 2012, and is now a regular for club and country.
He has been in discussions with Stamford Bridge officials, and bosses are now ready to hand him a contract worth around £120,000-a-week until 2018.
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