Chelsea legend John Terry is ready to return to the club in a stunning move.

The Sun says Terry is set to become U23 manager of Chelsea.

The Blues legend, 37, has agreed an £800,000-a-year deal at Stamford Bridge and will take over once he completes his coaching badges.

The ex-England captain, who has been training for his Uefa licences since 2014, has previously said he would love to manage Chelsea.

He will replace another former Stamford Bridge favourite, Jody Morris, who quit the Academy side to join Frank Lampard at Derby.

Boss Maurizio Sarri is understood to have been behind the approach.

A source said: "John has made no bones about the fact he's keen to get into management and obviously Chelsea has always been the dream. He has been in talks with the boss for the past few weeks and has verbally agreed the deal.

"It will only come to fruition though once he has finished his badges.

"An as-yet undecided manager will take over in the interim."