Terry said: "With the things we achieve domestically in this country, we have a right to be up there with the best teams in the world. There's no reason why we shouldn't be. We have competed with the best teams in the world, against the best players and we have to start proving it on the pitch.
"The players give you hope. The players are there, we just need to do it as a team collectively. We see week in, week out in the Premier League and Champions League what they can do.
"I think the fans are frustrated more than anything, they want to see us gel together as a team."
Terry, speaking at a sponsoredbyyou.com event for England team sponsors Nationwide, added: "The hurt is still there and it always will be, especially when we are watching the games at Euro 2008."