Chelsea captain John Terry has agreed a new one-year contract extension at the club, putting an end to the speculation over his future.


Terry has been reinvigorated this season after being reunited with manager Jose Mourinho at the start of the campaign, helping the Blues to a third placed finish in the Premier League and the Champions League semi-finals.


Terry has always professed that he would like to stay with the club but reports that he wanted to sign a longer deal to stay was said to be the stumbling block, as Chelsea's policy on players over 30 is for them to sign one-year contracts.


Terry, it appears, has agreed to the one year extension after a brilliant season in blue to secure his immediate future, but uncertainty still surrounds the futures of Chelsea stalwarts Ashley Cole and Frank Lampard.


The 33-year-old made 34 league appearances for the club this season scoring twice, while also making 11 appearances in the Champions League.


Chelsea have received a massive boost with the news and it comes less than 24 hours after it emerged that the club had agreed a £32 million fee with Atletico Madrid for star striker Diego Costa.