The 32-year-old has been with the Blues since the summer of 2015, joining from Barcelona for £19 million on a four-year deal.
Pedro has since featured in over 200 games across all competitions for Chelsea, scoring 43 goals.
The Spaniard has won the Premier League, FA Cup and UEFA Europa League with the Stamford Bridge outfit, but is no longer a regular under boss Frank Lampard, featuring in just 18 games across all competitions this term.
“I’m terminating my contract, but right now it’s not the most important thing, nor have I stopped to think about it,” the former Barcelona star told El Larguero on CADENA SER.