That’s the opinion of former blues star Paul Canoville.
Hudson-Odoi is wanted by Bundesliga giants Bayern Munich this month.
The 18-year-old is weighing up whether to gamble on a move to Germany or stay at Chelsea.
Hudson-Odoi has featured more regularly for the Blues this season in recent weeks and has made a total of nine appearances in all competitions.
And Canoville insists Chelsea must keep the England starlet.
Speaking to talkSPORT he said: “Hudson-Odoi is a player Chelsea need.
“We NEED that player. I’ve seen the guy play under Jody Morris [Chelsea’s former Under-18 head coach] and he is talented.
“He’s frightening and when he comes on he can do things.
“They [Chelsea] know the talent of the player so they’re going to offer him [a new contract].
“His agent is going to sort that out for him.
“He doesn’t really want to go, he wants to play. He wants to be starting the game and playing.
“When Bayern Munich offer him some games he’s always going to think about that.”
Chelsea are believed to have offered Hudson-Odoi a new contract worth £70,000-a-week to keep him at Stamford Bridge.
The Blues are also said to be close to completing a deal for Gonzalo Higuain.
Chelsea return to Premier League action tomorrow when they travel to Arsenal (5.30pm).
A win for Sarri’s side would move then nine points clear of the Gunners.