Ballack gave Chelsea a sixth-minute lead when he headed home a cross from Lampard, who then added the second in the 25th. Ballack collected John Terry's headed pass but had his shot blocked by Olympiakos goalkeeper Antonios Nikopolidis, before the ball rolled to Lampard who fired home.
Kalou added the third in the 48th minute when he turned home Lampard's corner from close range. It is the fourth time in five seasons Chelsea has reached the quarterfinal although it is yet to reach the final.
If Liverpool protects its 2-0 lead from the first leg against Inter, four English clubs will have made it to the last eight.
"What will be, will be," Lampard said. "If all four of us go through -- and Liverpool are in a good position -- there will be a great chance of an all-English match. It's obviously great for England if we're all in there but if we draw one we will have to do deal with it."
Porto's Fucile (left 2) is fouled by Schalke's Kevin Kuranyi, during the Champions League second round soccer match between FC Porto and FC Schalke 04 in Porto, Portugal, yesterday.
Schalke went to Porto ahead 1-0 from the first leg and kept that advantage until the 86th minute when Lisandro Lopez hit back for the home side to send the match into extra time. By that time Porto was down to 10 men after Jorge Fucile was ejected.
In the shootout, Schalke goalkeeper Manuel Neuer made standout stops to foil Bruno Alves and Lopez while the German club made all four spot kicks.
On Tuesday, Arsenal beat AC Milan 2-0 to oust the defending champions 2-0 on aggregate, while Manchester United, FC Barcelona and Fenerbahce also advanced.
United edged Lyon 2-1 on aggregate, Barcelona beat Celtic 4-2 on aggregate and Fenerbahce beat Sevilla on penalties after the two teams finished 5-5 on aggregate.
The quarterfinal draw is set for March 14.
(Agencies via Shanghai Daily March 6, 2008)