But Chelsea felt Swansea was the best destination for Abraham, who scored 23 goals for loan club Bristol City last season.
It is normal practice for Chelsea's talented young players to sign contract extensions before departing on season-long loans.More news: Commonly prescribed gastric acid drug may increase death risk, study shows
The Blues announced both the new deal and the loan agreement for the 19-year-old, where he will join Swans boss and former Chelsea assistant Paul Clement.
Abraham's goal in a 2-2 draw against Sheffield Wednesday F.C, his 16th in the league, ensuring he became the highest-scoring teenager in championship history.
Abraham represented England at the European Under-21 Championship in Poland, helping them reach the semi-finals before a penalty shoot-out defeat to eventual winners Germany.More news: Samsung is preparing a smart column
Swansea, who finished 15th in the Premier League last season, open their 2017-18 campaign at Southampton on August 12.
Chelsea want Abraham to complete at least two full seasons on loan before he is considered for a first-team squad place at Stamford Bridge.More news: North Korea claims it tested first intercontinental missile
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