The Daily Mail says Hancock has left Stamford Bridge this summer, just 18 months after he was headhunted from Leeds United.
England skipper Terry was persuaded by disgruntled players to lead a delegation to see Hancock reinstated, stressing the value of the bond of trust between a footballer and a physio, but his efforts failed.
"There was absolutely no clash of personalities," said a club spokesman. "There was a restructuring within the medical department and Dave was offered a role within that, which he initially declined. Therefore his contract was not renewed. The club wishes him all the best and thanks him for all his work with Chelsea."