The 20-year-old was shipped off on loan to Portman Road last summer, where he proved instrumental in the Tractor Boys winning promotion to the Premier League.
Hutchinson, who swapped Arsenal’s academy for Chelsea’s in 2022, chipped in with ten goals and six assists in 44 Championship matches.
And Ipswich are now desperate to turn his temporary stay into a permanent switch, with the Suffolk outfit locked in talks with the Blues.
It is believed that Ipswich are prepared to fork out £20m on the Jamiaca international.
Meanwhile the potential deal will not include a buy-back clause, though Chelsea would benefit from a future sell-on clause.
Should Ipswich snap up Hutchinson for £20m, it would shatter their current transfer record, which has stood for 23 years.
Their current record stands at £4.75m having lured Matteo Sereni away from Sampdoria in 2001.
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