Antonio Conte’s Blues have been superb in recent weeks, claiming eleven straight league victories to hold a six-point lead at the top of the table on Christmas Day.
Chelsea historically go on to win the title when they are top at Christmas and club legend Lampard believes they will do so again this term.
He told Sky Sports: “As a Chelsea man it is great to see, all credit to everybody there.
“They look the dominant team. I fancy Chelsea strongly”
“The manager obviously changed the system after a defeat at Arsenal.
“Nobody would have fancied them to be anywhere near winning the League at that point and now they look the dominant team.
“I don’t like to tempt fate but I can’t see anyone who has got the consistency to close the gap, so I fancy Chelsea strongly now.”
He added: “[Man] City are in a decent position.
“And there are teams with quality for sure – City, I think Liverpool are very good to watch this year, and Arsenal.
“I think those will be the group chasing but with Chelsea, when you take that kind of a gap into Christmas, I think barring suspensions or injuries to top players like [Eden] Hazard and [Diego] Costa, I fancy them to carry it through.”
Chelsea beat Crystal Palace 1-0 on Saturday thanks to Diego Costa’s first-half header.
Conte and co now take on Bournemouth at Stamford Bridge on Boxing Day before hosting Stoke on New Year’s Eve.