Manchester City are monitoring John Terry's situation at Chelsea.

The Daily Star Sunday says Terry's future at Chelsea is on the line if manager Guus Hiddink takes the manager's job fulltime.

Friends in Holland say hard-line Dutchman Hiddink will consider ditching Terry - and Ashley Cole - in the summer because of the damage he fears caused to team discipline by their nightclub partying last week.

That could clear the way for Terry, 28, to be shown the door that leads out to Manchester City who have already made a £20million inquiry for him.

And the defender, who was with Cole when he was arrested last week, could also lose his dream of captaining England to the 2010 World Cup finals in South Africa if England coach Fabio Capello takes a similarly dim view.