Terry, 37, has been a free agent since leaving Villa at the end of last season, and is now one of the more desirable players on the market since the transfer window closed.
The centre back was all set for a shock move to Russia with Spartak Moscow, having seen his former Chelsea boss Antonio Conte recommend his services to Spartak boss and Conte's former Juve assistant Massimo Carrera.
However, Terry pulled the plug on his move to the Russian capital on Wednesday, suggesting that it isn't the right move for him now – and that means he is back on the market again.
The Mirror claim that former club Villa have made Terry an offer, but The Sun now report that Chelsea are prepared to hand him an emotional return to Stamford Bridge in order to start his coaching career.
Terry has been former England teammates Frank Lampard and Steven Gerrard earn managerial jobs at Derby County and Rangers respectively after returning to their former clubs to coach their Under-18's for just one year.
That leaves Terry with a major quandary; Chelsea are the club closest to Terry's heart, and it would surely be difficult to ignore the Blues and embark on his path towards management.
However, Terry may not be ready to hang up the boots just yet, and with unfinished business at Villa having lost last season's Championship play-off final, he may fancy one more crack at promotion with Steve Bruce's side before turning to coaching.