The Sun says there are now genuine fears that the Blues skipper's 'head could go' in his standoff with the club over interest from Manchester City and that he may end up leaving Stamford Bridge.
Blues insiders believe Terry is upset that Carlo Ancelotti spoke out on Monday BEFORE talking to him about City's ongoing interest - and that this is at the heart of the problem.
Talks between miffed Terry and the Blues top brass are planned for the next few days, even though Chelsea still insist there is no issue to be resolved.
Ancelotti publicly declared England centre-half Terry is not for sale at any price and that the case is closed.
But behind the scenes there are moves to try to nip a growing rift in the bud between the club and their iconic captain before matters get out of hand.