Terry retired from international football last season, but has been back to his best under Blues boss Jose Mourinho.
Asked whether Terry should reconsider his retirement, Wilkins told talkSPORT: “Yes I do. John is still the best centre-half we have in the country.
“John has always been criticised for not having the blistering pace that someone like Rio Ferdinand has, but he reads the game so well.
“He’s playing very well this year,” he added. “He has that presence whenever he plays, centre-half is a specialist position.
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