The 38-year-old is currently the assistant coach to Dean Smith at Aston Villa, but reports suggest he could well be in line for his first head coaching stint.
According to talkSPORT, Terry has been in talks with Middlesbrough over becoming their new manager following the departure of Tony Pulis at the expiry of his contract.
Pulis parted company with the Riverside club following their failure to reach the Championship playoffs.
Villa on the other hand are set to face Derby County in the Championship playoff final next week, with the winner to win promotion back to the English Premier League.
Former Blues captain, Terry, captained Villa to the playoff final 12 months ago, but suffered defeat at the hands of Fulham.
Terry spent 19 years at Stamford Bridge before his move to Villa Park. He won 15 major trophies at the club, making 717 appearances.
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According to the same report, Jonathan Woodgate, former Brighton & Hove Albion boss Chris Hughton, and Gabriel Batistuta are all contenders for the Boro position.