The move could pave the way for Hudson-Odoi's departure and the English teenager is said to be keen to leave Chelsea and join Bayern Munich, who have already tabled offers to Chelsea.
When he did make contact from the spot, it wasn't good enough to beat the visiting keeper Luke...
When Loftus-Cheek was hacked down by Danny Fox on the half-hour mark, the moment looked made for Fabregas, but his staggered run-up to the penalty failed to fool Steele, who dived down to his right to push the ball around the post.
The teenage winger nearly got one himself when he danced into the box only to see his shot blocked by a good low save by Steele.
The Catalan will likely reunite with former Arsenal teammate Thierry Henry at Monaco, who are now fighting relegation in Ligue 1, where he will have the minutes that he has so desperately craved this season at Chelsea.
Chelsea face Tottenham in the EFL Cup semi-final on Tuesday night before returning to Premier League action by welcoming Newcastle United to west London at the weekend.
What does it mean?
The 31-year-old former Arsenal and Barcelona star handed the captain's armband to David Luiz, with fans at Stamford Bridge applauding him for his contribution to the club.
Chelsea are prepared to offer Ruben Loftus-Cheek a break from first-team football as they seek to get to the bottom of his injury issues.