Terry is said
to have turned lucrative offers from foreign teams to extend his stay at
Stamford Bridge after agreeing a deal that will reportedly pay him in the
region of £175,000-a-week.
The 33-year-old, who is a product of
Chelsea's youth academy and made his debut in 1998, has been handed the
contract after a superb individual season with the Blues, which saw him return
to
peak form following the return of boss Jose Mourinho, after losing his place
under interim manager Rafael Benitez last term.
It was
initially claimed Terry would have to take a substantial pay cut to extend his
spell at Chelsea into his 17th season as a member of the first team.
Talks appeared to have stalled late in the
season, leaving Terry in the dark over his future.
But Mourinho had recommended that Chelsea
offer Terry a contract extension and, after negotiations resumed last week, he
has been rewarded for strong performances as the Blues finished third in the
league and reached the Champions League semi-finals.
"I'm
delighted to have signed an extension to my contract with Chelsea taking me
into my 20th year with the club," Terry told Chelsea's website.
"I'd like to thank the fans and club for
their continued support, and the manager who was instrumental for me the last
season."
Chelsea's recently adopted club policy is to
offer one-year deals to players in their 30s upon the expiry of their current
agreements and, while the player had originally asked for a two-year
commitment, he has accepted a shorter arrangement on terms that will still
leave him as one of the best paid defenders in the English top-flight.
Chelsea chief
executive Ron Gourlay added: "We are very pleased John, who is an
undoubted Chelsea legend, will continue to lead the team next season, as he has
done for so many years with unrivalled achievement.
"Both Chelsea and John have been clear
throughout that we wanted his outstanding career at the club to continue, and
it is important the matter has been concluded so soon after the end of the
season, allowing us to look forward to and plan for 2014-15."
Terry, who
joined the club age 14, has played 621 games for Chelsea, scoring 57 goals, and
has been captain on 490 occasions. He has won three Premier League titles, the
2012 Champions League, the 2013 Europa League, five FA Cups, two League Cups
and the Community Shield.
Terry, who made
47 appearances this season, enjoyed such a successful season alongside Gary
Cahill that there was talk he might make himself available for England duty.
Terry retired from international football in
the wake of the Anton Ferdinand race saga and after twice being stripped of the
England captaincy.
But last month
he ruled out the possibility of an England return and wasn't named in Roy
Hodgson's squad for the tournament in Brazil.
With Terry's future resolved, attention will
now turn to Frank Lampard and Ashley Cole -- fellow Chelsea legends who are
also out of contract during the close-season.
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