The 34-year-old had been tipped to leave Stamford Bridge after revealing in February that the west London club were yet to open a dialogue over extending his contract past the end of the season.
Recently, there has even been talk of the veteran centre-back moving to the Chinese Super League on a two-year contract that would see him net a staggering £24million.
But BBC Sport reported last week that Chelsea had indeed offered Terry a one-year contract and the former England suggested to fans he could stay on after the Blues’ final match of the 2015/16 Premier League season on Sunday.
Following a 1-1 draw with champions Leicester City, the England international told the Stamford Bridge crowd in an emotional speech; “I’ve said for a very long time I want to finish my career here. I’ll be speaking to the club over the next few days. I want to stay. The club knows that, the fans know that.”
And via their official website, the club have now confirmed that Terry will be staying on for another season after signing a one-year contract, following talks with incoming manager Antonio Conte, the Chelsea board and owner Roman Abramovich.
He said upon putting pen to paper; “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.”