Washington, who joined Chelsea from Santos last summer, struggled for playing time in his first season in England, featuring in just three matches during the 2023-24 campaign.
As a result, the 19-year-old has been linked with a summer departure in a bid to gain valuable playing time elsewhere.
Early on Friday, it was reported that Washington was set to complete a move to Chelsea's sister club Strasbourg for around £18m.
However, it was later reported by L'Equipe that the proposed move had fallen through amid fears that the Premier League could investigate the transfer between the two clubs sharing the same ownership group.
Washington set to remain at Stamford Bridge
After he saw his move to France fall through, Washington was then linked with a potential loan switch to Championship side Hull City.
However, according to journalist Fabrizio Romano, the Brazilian will not join Hull and is now set to remain in West London.
Chelsea boss Enzo Maresca now faces a dilemma because Washington was not regarded as part of his plans for the 2024-25 season.
However, Maresca must decide whether to give Washington a role in the first-team squad, but it seems unlikely that he will enjoy any meaningful game time before the January transfer window.
The teenager is currently behind Nicolas Jackson and Marc Guiu in the pecking order of Chelsea strikers which means could now face a few frustrating months on the fringes of the Chelsea squad.