Chelsea confirmed on Monday afternoon that Terry, 36, will depart his boyhood club when the current campaign ends, bringing to a close his long spell at Stamford Bridge that has lasted 22 years.
The defender, who joined Chelsea aged 14, has played a bit-part role for Antonio Conte's side this term but the club thanked Terry for remaining an "influential" and "inspirational" member of the squad that is on course to win the title this term.
In a statement on their website, Chelsea wrote: "John Terry and Chelsea Football Club today jointly announce our captain will leave the club at the end of the season.
John Terry and Chelsea Football Club today jointly announce our captain will leave the club at the end of the season https://t.co/zQZe6zPLGC— Chelsea FC (@ChelseaFC) April 17, 2017
"Everybody at Stamford Bridge would like to express our enormous gratitude to John and wish him the very best of luck for the future.
"This season he has featured less on the field but remained an influential and inspirational member of the squad which, under Antonio Conte’s guidance, sits top of the Premier League.
"Throughout his career ‘JT’ has contributed immensely to us achieving consistent success unequalled in the club’s history.
"He has won the Champions League, four Premier League titles, the Europa League, five FA Cups and three League Cups. His 14 major honours make him our most decorated individual of all time."
It remains to be seen where Terry will continue playing next season although the defender has previously expressed a desire to move into coaching.
However, the club did suggest Terry could return to Chelsea in a "non-playing capacity" in the near future.