There is understood to be a potential obligation to buy him at the end of the 2025/26 campaign, while the Premier League giants are said to included a have a buy-back clause if he does join Town permanently.
A 19-year-old forward who predominantly plays on the right, he joined Chelsea's academy at the age of eight. He is able to play in a variety of attacking positions and has a 'remarkable quality' on free-kicks.
Per Chelsea's website: "He has represented England at the Under-15, Under-16 and Under-18 age groups, moving up to the Under-19s in 2024/25, and was a big part of the Chelsea youth team in 2022/23 when still a schoolboy, playing in various competitions.
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He became the youngest-ever Chelsea UEFA Youth League goalscorer at the age of 15 with a strike against Dinamo Zagreb.
"Having been a regular in the Under-18 side and scored four goals in the first half of the 2023/24 season, Runham signed his first professional contract in January 2024."
Runham now joins up with John McGreal's side, who sit fourth in the Premier League 2 table after 13 games.
“I’m delighted to be at this massive club,” he said.
“I’ve had a good youth career so far and I'm now looking forward to continuing my progress at Ipswich Town.
“It’s a huge club that are doing well at the minute in Premier League 2 and in the Championship, so I see the club’s going in the right direction and I feel it’s the right place to give me the right pathway in my career.”
You can watch his best moments for Chelsea here.