The 37-year-old posted a social media statement on Sunday evening, announcing his decision to finish his playing career.
After 23 incredible years as a footballer, I have decided now is the right time to retire from playing, Terry wrote.
He left Chelsea after winning his fifth league title at the club in 2017 and went on to captain Aston Villa last season.
The Championship side reportedly want him in their new-look coaching staff, with Thierry Henry in pole position to become manager this week.
Terry turned down a move to Spartak Moscow last month, despite reportedly having a medical, saying it was not right for his family.
In his career at Stamford Bridge, John Terry won five Premier League titles, five FA Cups and the Champions League.
He also won three League Cups and a Europa League, recording a total of 717 appearances for the Blues.
Twenty-two years as a Blue. Fifteen major trophies. One of the finest careers of any Englishman in the history of the game.— Chelsea FC (@ChelseaFC) October 7, 2018
Enjoy your retirement, JT. 💙 #CaptainLeaderLegend pic.twitter.com/t3KuoHomhK
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