
Michy's existing Chelsea deal was set to expire next summer but the additional 12 months will now ensure he does not become a free agent once his loan expires.
Crystal Palace have an option to buy the player at the end of the loan deal but they are not obliged to.

The 26-year-old striker joined Chelsea for £33million from Marseille in 2016 but has struggled for regular game time and been pushed further down the pecking order this summer.
The £53m signing of Timo Werner, adding to Tammy Abraham and Olivier Giroud already in the squad, means Batshuayi would have been the fourth-choice striker in Frank Lampard's options.
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While on Chelsea’s books Batshuayi has spent time on loan at Valencia, Borussia Dortmund and Palace, and his spell at Selhurst Park was especially successful, with Batshuayi scoring seven times in just 13 games in the second half of the 2018-19 season.
Palace have now re-signed Batshuayi, who has also been linked with the likes of West Brom, Newcastle, Leeds and clubs in Germany.

Yet the following season, Batshuayi moved on loan to Borussia Dortmund in January 2018, where he effectively replaced Pierre-Emerick Aubameyang, who had just joined Arsenal.
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Loan spells at Valencia and Palace followed, before a second chance by Lampard was not capitalised on last season.
The Belgium international arrival at Selhurst will also attract the potential loan move of another Chelsea player.

Chelsea starlet Conor Gallagher has also been linked with a temporary move to the Eagles, but due to loan rules will have to scrap those plans. Newly-promoted pair West Brom and Leeds are said to now be intensifying their interest in the midfielder.
Yeah he really needs more playing chances
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