The Chelsea legend looks destined to leave the club this summer when his current deal at Stamford Bridge comes to an end.
He has been offered a new deal by the club, but it is as yet unknown whether he will decide to remain at the club.
If that does not happen, a big money move to the Chinese Super League has been mooted as a possible destination for him.
Merson though believes that his old club should make an offer as he would be priceless to them.
“I find it shocking that nobody in England has come in for him,” he told Soccer Saturday.
“If I was Arsenal manager I would take him tomorrow morning. He’s a winner and an out and out centre half what they need. He would priceless to Arsenal.”
A move to Arsenal would certainly be a controversial one for Terry given his life-long association with Chelsea.
There is no denying he would add some much needed experience to the Gunners' line-up though, similar to how Petr Cech has done in goal.
Indeed, it would be interesting to see if Terry were to move whether the Chelsea fans would accept it as well as they did Cech’s switch last summer.