The deal is the second in a series of renewals designed to reward Chelsea‘s top performers, with captain Reece James the first to sign and the club negotiating at least one further agreement before the end of the season.
Chelsea had also agreed a similar pay rise for positive performances to Cole Palmer early last season, showing a willingness to reward star performers, albeit in an incentive-based structure which is adjusted for hitting certain targets like Champions League qualification.
Chelsea regard Caicedo as one of the best midfielders in the world and he is among the club’s captains.
Caicedo was the only player to start every Premier League match last season under former boss Enzo Maresca, while this campaign he has also been ever-present, playing 42 times and scoring five goals from defensive midfield.
Meanwhile, midfielder Enzo Fernandez and defender Levi Colwill are among those known to have discussed potential new contracts in the past six months.
However, Fernandez is returning from a two-game internal ban following comments made during international duty about wanting to live in Spain’s capital, amid continuing links with Real Madrid.
After the ban was announced by head coach Liam Rosenior, Fernandez’s agent Javier Pastore said “[he] deserves much more than he is currently earning,” in a lengthy interview with the Athletic.
Chelsea next face Manchester United at Stamford Bridge on Saturday (20:00 BST), with the club sixth in the Premier League and chasing Champions League qualification.
