Terry, the Aston Villa captain, has decided to delay his next move until the end of the season as he focuses on helping guide Steve Bruce’s team back to the Premier League.
Telegraph Sport can reveal that Terry and Villa have a mutual option to trigger another 12 months to his current £60,000-a-week contract.
Terry turned 37 in December and his impact at Villa has been significant since making the emotional decision to quit Chelsea on a free transfer last summer after two decades of service.
Villa are now second in the Championship after the 2-0 win over rivals Birmingham on Sunday, a victory which ensured Terry has recorded 227 clean sheets in English football.
His Villa contract expires at the end of this season and there are a number of factors for him to consider, which could be determined by which division Villa will be operating in, while he could take up more lucrative offers abroad or opts for retirement.
Terry missed two-and-a-half months of the season with Villa after suffering a broken metatarsal in November but since his return Villa have racked up five Championship victories in a row.
Villa are reluctant to put any pressure on the former England centre-half, with a decision likely over the summer.
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Aston Villa top scorer Albert Adomah has acknowledged the debt Steve Bruce’s in-form Championship side currently owe to fit-again Jack Grealish.
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Since replacing the injured Josh Onomah early in the 1-0 win at Middlesbrough on 30 December, Grealish has made six successive league starts in Villa’s run of seven straight league wins.
“Even if he doesn’t score, he produces magic. He creates things from nowhere.”
After running off a first-half hamstring injury, Adomah scored his 13th goal of the season in Sunday’s 2-0 derby win over Birmingham City – fashioned by a clever left-wing pass from Grealish.
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“He’s always producing assists,” added Adomah. “It’s down to the team that I’m scoring so many goals but, if I keep on scoring and the team is winning, then that would make most happy.”
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In climbing to second in the table, the highest place they have been under Bruce, Villa assistant manager Colin Calderwood is also appreciative of the impact Grealish has had in recent weeks following an injury-disrupted first three months of the season.
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“His consistency of performance is especially pleasing at the minute, for all of us and especially him,” said Calderwood.
“He can bring out those moments of quality that catch the eye, but his recent involvement in recent games has been excellent.
“We’re very satisfied with the level and quality we showed against Birmingham. We controlled ourselves. We’ve produced what we believe we can produce on a derby day when the tension is high.”
Villa’s next game is at fellow promotion challengers Fulham on Saturday (15:00 GMT).
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