Terry who commonly plays as a centre back said the club would not be renewing his contract, bringing to an end his 18-year spell in west London.
Terry also revealed he will not join another Premier League club but will continue his career elsewhere.
The popular Blues captain said after his side’s 5-1 FA Cup fourth-round victory over MK Dons on Sunday: ‘To be honest, I was in last week before the Arsenal game and it’s not going to be extended. It’s my last run in the FA Cup so I want to make it a good one.
‘It’s a big season for me and I want to push on – not just in this competition but in the Premier League as well. I knew before the Arsenal game so mentally I’ve kind of accepted it. We just have to move on.’
Terry went on to explain: ‘They said that when the new manager comes in, things might change. It’s a no at the minute. I needed to know now like I have done every January and sometimes it takes a couple of months to get done.
‘Unfortunately it was a no. It’s not going to be a fairytale ending, I’m not going to retire at Chelsea. It’s going to be elsewhere which it took me a couple of days to get over.
‘But like I say, I knew before the Arsenal game and my performance isn’t going to change – the way I train, what I give for the club. I want to give everything and finish on a high, on 100 per cent good terms with the club.’
On his and Chelsea’s future plans, the former England skipper added: ‘We spoke about my legacy and coming back to the club when I finish. The most important thing now is to get us up the league.
‘I didn’t feel as though I was playing great in the first four or five games of the season, like everyone in the team, and the performances showed that. But since then myself and everyone else has picked up back to where we are. All I can do is keep my head down and plug on because it’ll be my last year at the club.