The 36-year-old England defender said in an official club statement on Monday that he is ‘eager’ to not hang up his boots just yet.
Terry joined Chelsea as a teenager, having come through the club’s academy and has been part of the first-team since 1995 where he has won 14 major honours including the UEFA Champions League and the Europa League.
“After 22 years there is so much to say and so many people to thank at this great football club,” Terry told the club’s official website.
“From coaches, team-mates and staff to the fans who have given me so much support down the years, I can’t thank you enough. There will be opportunities for me to speak further about this over the coming weeks.
“I will decide on my future in due course, but for now I am committed to helping the team achieve success this season.
“The club and I have always had a fantastic relationship, which will continue beyond my playing days. We had some really positive talks but with everything taken into careful consideration I have decided it’s the right time for me to leave.
“I’ve always been conscious that I depart at the right time, in the right way, and I feel that the end of this season is the right time for the club and I. I feel I still have plenty to offer on the pitch but understand that opportunities here at Chelsea will be limited for me.
“I’m eager to carry on playing and so will be looking to continue with a new challenge. I will of course always be a Blue and am desperate to end my final season as a Chelsea player with more silverware.
“Finally, words cannot describe the love I have for our football club and our amazing Chelsea fans. I would like to thank each and every one of you from the bottom of my heart for the unbelievable support you’ve shown me over the years.
“You mean the world to me and every trophy we’ve won during my time at the club we’ve won together. I will never forget the incredible journey we’ve been on. Thank you so much for everything.”
Terry has scored 66 goals in 713 matches for Chelsea since his debut in 1998. He is west London club’s third highest all-time appearance-maker and has captained them a record 578 times.
His 14-trophy haul is broken down as; the Champions League, four Premier League titles, the Europa League, five FA Cups and three League Cups. The honours make him Chelsea’s most decorated individual of all time to earn himself a legendary status.