The Independent says Roman Abramovich told Terry that he will not be allowed to leave Chelsea and that the club will not match the extraordinary £280,000-a-week offer from Manchester City in a tense meeting between the pair on Saturday evening.
Chelsea will now try to make the player an offer that will placate him - a rise on his £135,000-a-week and a longer contract than his current three years - in the hope that he will sign, although there are no guarantees. The meeting on Saturday was understood to be frosty with Terry telling Abramovich that he wanted the club's permission to talk to City - essentially signalling his desire to leave. Abramovich refused to yield.
The England captain will be in training today for a double session at Cobham with their manager Carlo Ancelotti but he is considering his next move. He recognises that refusing to play for Chelsea is not an option and he has no intention of going on strike. He wants the situation resolved before the pre-season tour of America which departs on Thursday.