Hall graduated from Chelsea’s youth system before debuting for the senior team last season.
The 18-year-old signed the new deal before securing a move to Crystal Palace on loan for the coming season.
The friendship between Palace manager Roy Hodgson and Chelsea boss Mauricio Pochettino proved key in helping the Eagles secure the deal for the English youth international.
However, Hall will not be able to debut for the club when they face Sheffield United in their Premier League opener on Saturday.
The youngster will reportedly play in midfield, his natural position, despite breaking into the first team as a left-back.
He will likely deputise for injured left-back Tyrick Mitchell before moving further forward.
Hall broke into Chelsea’s first team due to injuries to regular left-backs Ben Chilwell and Marc Cucurella.
The Slough-born talent played with an ease that belied his age. He remained undaunted against Manchester United and Manchester City, showcasing a maturity beyond his years.
Hall created five big chances in 11 appearances and won the Chelsea Academy Player of the Year Award.
However, the upcoming season may pose a challenge as Hall tries to break into the Chelsea first-team set-up.
Marc Cucurella arrived for big money last summer, and after his disappointing campaign, they have been unable to move him on.
Cucurella’s performances have not improved from the looks of pre-season, and there are no takers.
To add to the competition, Ian Maatsen is back from an exciting loan spell at Burnley, while newly-appointed assistant captain Chilwell remains ever-present.
Chelsea’s midfield is already stacked, and they are still keen on adding two more holding midfielders to their ranks. It makes sense for Hall to leave on loan.
He will hope to impress on his loan spell and reintegrate himself into the Chelsea team upon his return after a promising debut campaign in senior football.
- Ineffective Man Utd star should be dropped for Burnley clash
- Daniel Levy open to selling Tottenham stake in Tottenham for ‘the right money’
- FIFA Rankings: Argentina retain top spot ahead of France, Brazil & England, Germany continue to fall
- Neil Warnock departs Huddersfield Town after draw with Stoke City
- Sociedad’s dominance, Inzaghi’s questionable decisions, Martinez comes up clutch – Takeaways from Inter Milan’s draw vs Real Sociedad