The Telegraph's Matt Law reported that the Blues are in discussions with the 33-year-old, whose contract expires at the end of the current season, to keep him at Stamford Bridge for the 2014-15 campaign:
But Telegraph Sport can reveal talks between Terry and Chelsea have now started, with both parties hoping an agreement can be reached.
The negotiation process may not be straightforward, due to Chelsea’s policy of only offering outfield players aged over 30 one-year deals and the fact Terry is likely to be asked to take a cut to his £150,000-a-week wages.
It's a testament as to how much Terry has improved over the last few seasons that the club may be willing to extend his time at the club for another season.
Under Andre Villas-Boas, the veteran centre-back looked lost, routinely getting caught out as a result of Chelsea's high line. Since Roberto Di Matteo and Jose Mourinho have come in, though, Terry has been able to return to a system that made him one of the best central defenders in the world.
Taking a pay cut shouldn't be too much of a problem. Chelsea are the only club that Terry has known throughout his senior career. You can see both Terry and Frank Lampard stepping away from the game as a Blues player.
Keeping Terry around—for the right price—would also seem a no-brainer for Chelsea. He still offers plenty of utility, even at 33, and with Kurt Zouma coming in next year, his experience can prove invaluable in acclimating the young defender to the Premier League.
Zouma made his admiration for Terry known, telling French television channel Canal+ (via Goal's Chris Davie), "Terry? He’s an emblematic Chelsea player, a great defender, physical, technical, who [can] score goals too. He is an example for me in my position."
Terry probably only has a few years left in his impressive career. It'd be a shame if those were spent at anywhere else but Chelsea.