The former Italy boss still has two years left to run on his contract but has impressed Roman Abramovich after leading the Blues to the verge of the Premier League title.
It has been a remarkable turnaround for Chelsea who could move a step closer to their second League and FA Cup double if they beat Tottenham at Wembley later this month.
Conte, 47, earns around £5million a season and will be rewarded with a huge pay raise of around 50 per cent to keep in West London for the next five years.
He is a target for Inter Milan but is expected to move his family to London this summer after they remained in Italy during his first campaign in charge.
Conte will finalise the deal as soon as Chelsea have secured their sixth domestic crown after seeking assurances that no first team stars will be sold this summer.
As a result Abramovich will rebuff any World record offers that come from Real Madrid for Belgium play maker Eden Hazard or goalkeeper Thibaut Courtois.
