The decision has been taken following the appointment of Antonio Conte as the club’s new manager last month, and consultation between Terry, Conte, the owner and the board.

Terry said: ‘I am delighted to sign a new contract with the club. Everyone knows I'm Chelsea through and through.

‘I am looking forward to next season under the new manager and hopefully we can make it a successful one.

‘Also, a special mention to the fans for their continued support. You’re the best in the world.’

The agreement will take Terry into his 22nd year with the Blues, having signed at the age of 14. He has since made 703 first-team appearances, the third-highest in our history, with a club-record 570 of those as captain.

Chairman Bruce Buck said: ‘We are delighted John will spend another year at the club. He has been the leader of the Chelsea squad throughout the most successful period in our history. He recently reached the 700-appearance mark, which is testament to his professionalism and dedication as well as his undoubted talent.’

Director Marina Granovskaia added: ‘We look forward to another year with John at the club, and believe he will be an important figure in the dressing room and on the pitch as we look to bring success back to the club next season.’

Since his debut in 1998, Terry has won every available major club honour with Chelsea, a trophy haul which includes the Champions League, Europa League, four Premier Leagues, five FA Cups and three League Cups.

In addition to his list of club honours, Terry also won 78 England caps before his retirement from international football in 2012, as well as being voted the PFA Player of the Year in 2005. He has lifted the Chelsea Player of the Year award twice, while appearing in five consecutive FIFPro World XI teams, as voted by his peers. He was also named in last season’s PFA Premier League Team of the Year, his fourth such honour, after playing in all 38 matches of our title-winning campaign.