The news was confirmed in a joint statement from captain and club, with Terry commenting: "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."
He added: "Words cannot describe the love I have for our football club and our amazing Chelsea fans.
To date, Terry has made 713 appearances for the only club he has represented - aside from a brief loan spell with Nottingham Forest 17 years ago - during his career, with leaves him behind just Ron Harris and Peter Bonetti in the club's all-time records.
Of those 713 games, a staggering 578 were as captain as Terry rose up and became Chelsea's most decorated player of all time with 14 trophies; including four Premier League titles, the FA Cup five times and the Champions League once.
Browse our gallery above to relive some of the landmark moments of a storied career...