Chelsea have endured a poor start to the season with question marks hanging over their defence that was so watertight in the last campaign.
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Cahill, 29, only had 18 months remaining on his previous deal and had been hoping to secure his long-term future at the club before turning 30 next month.
However, the centre-back has put pen to paper with just over a fortnight to spare and he is now committed to the Stamford Bridge club until 2019.
He has blossomed at Chelsea, playing alongside John Terry for most of his time there, and his form saw him named in the Professional Footballers’ Association Premier League team of the year in 2013-14 and 2014-15.
The Premier League champions announced on their website on Wednesday that the England defender had signed a new four-year contract.
Talks over what happens next regarding Musonda are likely to take place over the coming weeks, ahead of the January transfer window.
It is a really interesting move because normally Chelsea only offer players over the age of 30 contracts that run for one year.
There would certainly be no shortage of takers for Musonda if he became available, as Manchester United, Manchester City, Arsenal and a host of big clubs on the continent have monitored his progress for a number of years.
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The defender joined Chelsea in 2012 from Bolton Wanderers for a reported £7m fee.
