The German is due to fall out of contract and there had been suggestions that he could be ready to leave on a free transfer after failing to agree a new deal with Roman Abramovich.
However the midfielder, who will miss the World Cup through injury, has said he is now ready to commit his future after the club showed him so much support.
"I think that I'll continue playing for Chelsea, as in the last few days I keep getting calls from the club. People trying to comfort and inspire me," Ballack revealed.
"All of this suggests I'll stay at Chelsea. Also, the coach Carlo Ancelotti always showed confidence in me during the season."