Cole joined the Blues in 2006 after spending eight years at London rivals Arsenal.
"I want to end my playing career with Chelsea," he told Sky Sports.
"There are still many years of football left in me and I want to be part of Chelsea as this is the club that can pose a threat to all the big names in the game at all levels."
The 30-year-old has won ten major honours during his playing career, including becoming the first player to win six FA Cup winner's medals.
Chelsea begin the new Premier League season away at Stoke City on August 14.