The 32-year-old’s contract with the Blues expires at the end of the season.
Ballack said: “I am relaxed about my contract situation. I love Chelsea.
“As a player you have to have a good feeling about where you are and there is no reason why I should change clubs when I’m feeling this good.
“I’m not 25 any more and thinking about all the places I’d like to go. I’m now playing for one of the biggest clubs in the world.
“We can still improve and I want to help with this.
“I feel I have a lot to give for years to come. I think I have a lot of experience and am still in good shape.
“I feel strong I can imagine finishing my career at Chelsea and we want to win something big.
“Last season we were very close to doing it with the Champions League and these are days where you can make history and that is what I want to do at Chelsea.”