Chelsea captain, , has signed a new five-year contract which is reported to be worth £150,000 per week.
The defender was the subject of much transfer speculation in the summer; with claims of a £40m bid from Manchester City.
A statement on the official Chelsea website stated that the club was "delighted" that Terry had signed the new deal.
It added that the move reaffirms the England skipper's desire to end his career at Stamford Bridge.
Rumours suggested that Terry was considering a move to Manchester City this summer, but the centre-back eventually ended his silence by pledging his future to the club in July.
Terry was wanted by City boss, Mark Hughes to be a key part of the City's recent revolution which have seen them spend in excess of £120million on players like Emmanuel Adebayor, Carlos Tevez, Roque Santa Cruz and Gareth Barry.
It was reported that City were ready to offer Terry £200,000 a week.
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