The 21-year-old impressed on loan at West Bromwich Albion last season despite the club's relegation from the Premier League, and he is now set to spend the current campaign on loan at Crystal Palace.
The midfielder has been in strong form for the Eagles in the early stages of the season, scoring twice and providing one assist in three Premier League appearances.
According to Eurosport, Chelsea have 'total belief in his ability' and believe that the Englishman can challenge for a first-team role next season if he enjoys another successful spell away from the club.
The report claims that Gallagher is one of the few players sent on loan by Chelsea to have a genuine chance of securing a long-term future at Stamford Bridge.
The midfielder, who came through the youth system at the Blues, has also spent time out on loan at Charlton Athletic and Swansea City. body check tags ::