The Blues confirmed the English professional footballer’s extension on its website and twitter handle.
Interim manager, Guus Hiddink, who is preparing for his final Premier League match against champions, Leicester City, at the Stamford Bridge on Sunday said that Terry was considering the offer.
The 35-year-old former England defender would be out of contract at the end of the season.
He made his debut in 1998 and has played more than 700 games for the West London side.
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