The German club have been seriously considering another loan move although the Blues are keen for him to remain in England to complete his recovery.
Baba Rahman will stay at Chelsea to complete his recovery from an anterior cruciate ligament injury, despite prolonged interest from Schalke to bring him back to the Bundesliga, Goal understands.
The decision on the 23-year-old was made amicably as the Blues would prefer him to continue his recovery in their world-class Cobham Training Centre, while Schalke are not keen on rushing their former player back into first-team action.
Chelsea have been trying to sign wing-backs all summer but they failed in attempts to convince Juventus's Alex Sandro to make the move to Stamford Bridge, while Manchester City are understood to have outbid Conte's side for Danilo.
Rahman has made 23 appearances for Chelsea since signing from Augsburg for £21 million in 2015.
Source: Goal
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Baba Rahman should learn a lession from Christian Atsu who chose to look elsewhere for his professinal career and now a regular feature at New Castle. Very good decision by far.
Somebody must still be decieving Baba Rahman he could still play at Stanford Bridge. Chelsea are only being shrewd with the Baba's timing of recovery so they could make near value of money spent in his acquisition. Chelsea have moved passed Baba Rahman's era a long time. Besides, Chelsea has more than 30 players of Baba's calibre still being traded out on loan season after season. Baba Rahman should trigger the clause of compulsory transfer to free himself otherwise he remains in Chelsea's books until he's declared a free agent, that'll not be in his interest as a professional footballer and of course a young player at that.