Terry's current deal runs out at the end of the season.
Terry's current deal expires in the summer and the report says the club do not want another experienced player to leave Stamford Bridge and are keen to agree a deal before the end of the campaign, but they do say that no formal talks have taken place between the club and the player's representatives.
Some will question that strategy from Chelsea about leaving discussions with their captain so late, especially considering he has been the figurehead for all of their success over the past 11 seasons.
Chelsea have seen four of their most experienced players leave the club in recent seasons. There have been suggestions that Branislav Ivanovic has agreed a new deal with the club, which shows that the club are determined to keep hold of a couple of their older heads but will want their captain to remain with the club as they try and rebuild the side next season after a poor campaign this term.
Therefore, experienced players with pedigree will undoubtedly prove crucial to any side when it comes to settling new players in who could arrive during the summer as well as providing that element of stability.
Chelsea fans are likely to be very pleased if and when the news is confirmed of Terry staying at the club for another year.