The Blues legend left in 2017 after the club’s latest title triumph under Antonio Conte.
Terry left to play for Aston Villa, then in the Championship, after admitting he didn’t want to come up against Chelsea.
The 41-year-old then remained at Villa Park as part of Dean Smith’s coaching staff until this summer.
Terry has his sights set on a Premier League managerial role but, according to The Athletic, has recognised the difficulty when it comes to landing a job in the top flight.
As a result, the former England captain is now more hopeful of landing a role in the Championship, but in the meantime will return to Chelsea as a youth development coach.
Terry’s home remains close to the club’s Cobham training base and will allow him to continue furthering his coaching credentials.
Several current Blues employees who played with the former defender are believed to have been influential in his return.
Technical and performance advisor Petr Cech, loan technical officer Carlo Cudicini and academy director Neil Bath all had a say.
Terry’s former teammate Frank Lampard made a return to Stamford Bridge back in 2019 after a year with Derby County.
He only lasted 18 months however before he fell foul of Roman Abramovich’s lack of patience and cut throat nature.
Several of Terry’s former England teammates have landed jobs, namely Steven Gerrard, who is now making the big decisions at Villa Park after succeeding Smith.
The 41-year-old, who made over 700 appearances for Chelsea, will now assist with his former team’s academy.
The Blues in recent years have been able to tap in to their conveyor belt of talent that for years was allowed to leave for pastures new.
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