The Blues legend spent last season in the Championship with Aston Villa, almost helping them back to the Premier League as they missed out in the play-off final against Fulham at Wembley.

Terry had looked set for a shock move to Russia, with Spartak Moscow negotiating a deal with the 37-year-old thought to be worth £3million a year.

However, he called a halt to the move at the last minute.

“After considerable thought, I have decided to decline a contract offer from Spartak Moscow. I would like to take the opportunity to thank Spartak and wish them and their supporters well for the rest of the season.”

Now it would appear Terry is closing in on a sensational return to Stamford Bridge.

According to the Sun, Terry will sign a deal worth £800,000 a year to return to west London where he will become the club’s new U23’s manager thus replacing Jody Morris who left to join Frank Lampard at Derby County.