When swallowed, the chip send signals to a patch attached to the patient's shoulder.
The patch can also send a text if the patient forgets to take the medication.
The system, known as Raisin, also monitors heart activity and how well the patient is sleeping all of which may signal a deteriorating condition.
It costs a few cents per pill and was initially tested in the US, where it lifted patients' consistency in taking their medication from 30 per cent to 80 per cent.
If successful, the four-month test could lead to a year-long trial by Britain's health service.