The 18-year-old was believed to be one of the Blues' targets for the January transfer window after manager Carlo Ancelotti described him as 'the next John Terry'.
With an offer of around £15million reportedly tabled to the Ewood Park outfit it was expected the Blues would capture the England Under-21 star in the new year.
However, Jones limped out of Blackburn's 1-1 draw with West Ham on Saturday and a scan has revealed he suffered cruciate ligament damage.
Jones has now undergone surgery and will miss the rest of the season, forcing Chelsea to put any transfer plans they had on ice until the defender has fully recovered.
Chelsea last week