The England midfielder's current contract expires at the end of the season but Blues chief executive Ron Gourlay has revealed Cole is eager for a longer stay at Stamford Bridge.
He told Chelsea TV: "Joe's looking to negotiate his new contract for the next four to five years. That process has started and Joe has made it very, very clear he wants to stay with the football club."
He added: "I am sure over the coming months we will be able to work something out."
Gourlay also admitted that Chelsea would consider selling the naming rights for Stamford Bridge in order to keep pace with their rivals.
Arsenal earn around £3million per match at the Emirates while Chelsea's income is, on average, £2.2million.
The sale of naming rights is a way of making up that shortfall although Chelsea stressed that the name Stamford Bridge would be retained in any deal and it is understood they are looking for a blue-chip partner for a long-term contract between seven and 10 years.
Gourlay explained: "Retaining the heritage of the stadium is paramount to considering such a move, but we think that is achievable and, on that basis, we would enter into discussions over naming rights with the right partner for Chelsea.
"We understand that this is a sensitive issue for our fans and that is why we would keep the name Stamford Bridge in any deal.
"But we need to keep evolving and move the business forward to support the football side and the club generally. This is a potentially realistic way of doing that."