Lampard wants a longer deal than the four years offered by Chelsea and the club face the prospect of him leaving for nothing next summer if the matter is not resolved.
The situation has been somewhat confused, with new Chelsea coach Luiz Felipe Scolari insisting Lampard was happy to stay "for more than one year", while the player's agent Steve Kutner described his client's future as "completely unresolved".
"The Lampard team are not happy. Lampard wants to stay but he would like a five-year deal and Chelsea are only offering four on, from what I gather, about £150,000-a-week," said BBC football correspondent Jonathan Legard.
Lampard also has an option under Fifa rules to buy out the remaining 12 months of his contract.
This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.