John Terry agrees to £90,000-a-week paycut to stay at Chelsea for another year as he rejects lucrative switch to China

John Terry will stay at Chelsea for another year but has agreed to a potential wages drop of £90,000 a week.

Terry has signed a new 12-month deal at Stamford Bridge, rejecting a much more lucrative move to China to prolong his Chelsea career.

And Sportsmail can reveal that the former England captain has seen his basic salary drop close to £5million a year — from £140,000 per week to £50,000 per week.

John Terry has agreed to a drop in wages that will see him earn a basic salary of only £50,000 per week

Terry's contract at Chelsea next season is heavily incentivised but he is not guaranteed regualr football

The defender pictured signing his new one-year contract with the Stamford Bridge club on Wednesday

The contract offered to Terry last week was heavily based on incentives — particularly with regard to appearances.

Furthermore, it was made clear to Terry that he will not be viewed as an automatic starter by incoming manager Antonio Conte.

But the Chelsea captain is backing himself to play regularly, hence making up the significant shortfall in his basic wage, despite the warning that he could play a peripheral role.

Terry knows Conte will look to sign a new centre back this summer and, with Gary Cahill and Kurt Zouma at the club, there is a danger that he could be fourth-choice centre half. But he is confident that he can still be an integral part of Chelsea’s back four.

Terry will continue working towards his coaching badges during the next campaign, although there are no formal responsibilities as part of his new Chelsea deal.

There will, however, be an opportunity to work regularly within the academy set-up as he plots a career away from playing. Terry will remain as club captain, but the role as on-the-field skipper could be an early issue for Conte to solve if the 35-year-old fails to convince that he is worth a regular starting role.

Chelsea supporters saluted captain Terry during the game against Leicester, assuming it was his last match

Fans of the Blues salute their icon, who has been with the club for the entirety of his long career thus far

Terry was targeted for a move to China prior to his new deal and could still explore a move next summer

A potential final pay day in China at the end of next season is likely to be revisited if things do not go according to plan.

For now though, Terry remains fully committed to the club where he has spent his entire career.

‘I am delighted to sign a new contract with the club,’ Terry said. ‘Everyone knows I’m Chelsea through and through.

‘I am looking forward to next season under the new manager and hopefully we can make it a successful one.

JOHN TERRY'S CHELSEA CONTRACT SAGA: A TIMELINE 

Chelsea announced on Wednesday that John Terry had signed a new contract at Stamford Bridge, bringing to an end weeks of speculation regarding his future. Here's how the saga has unfolded over the past four months...

January 31: After an FA Cup game at MK Dons, Terry tells the press that he has not been offered a new contract by Chelsea, with his current deal due to expire at the end of the season.

'It's not going to be a fairytale ending, I'm not going to retire at Chelsea,' Terry confirmed.

February 7: The defender claims there has been a communication breakdown with the Blues over his future, though Chelsea are adamant a 12-month extension could still happen.

'The club is the most important thing but there's no communication at the moment,' said Terry.

A Chelsea fan holds up a banner reading 'captain, leader, legend' at Vicarage Road on February 3, three days after Terry revealed he had not been offered a new contract at Stamford Bridge

February 23: Clubs from China ramp up their interest in the centre back, with wages of £400,000 a week mooted, while former England boss Sven Goran Eriksson insists several Super League sides are keen to sign the 35-year-old.

March 5: Terry is still not ready to go into coaching as he holds out hope for a new Chelsea deal.

He said: 'While I've got a couple of years left, the main thing for me is to fully focus on that and give everything.'

April 1: Sportsmail is told that making the centre back a member of the backroom staff is being considered by incoming Blues manager Antonio Conte.

Sportsmail reported on April 1 that Antonio Conte would consider making Terry a member of his coaching staff when he takes over as manager of the Blues this summer

May 5: It is revealed that Terry's farewell preparations have extended to hiring the pitch at Stamford Bridge for a party.

The £22,000 package includes dressing rooms, match officials, access to the stadium screens and public address system and a barbecue.

May 6: Terry starts planning for life after Chelsea and tells his representatives to find an MLS club.

May 7: The former England captain is sent off at Sunderland for two bookable offences and, given it is his second red card of the season, picks up a two-match ban.

His Chelsea career appears to be over.

May 9: On a trip to Denmark, the 35-year-old reveals his desire to remain at Chelsea.

'I still want to play for a couple more years, hopefully that's at Chelsea,' said Terry. 'I'm a Chelsea player and that has been my club since the age of 14. I love Chelsea.' 

Terry is pictured in the stands at Brondby on May 9, having earlier told the Danish club's TV station that he was desperate to stay with Chelsea

May 11: Guus Hiddink says Terry is in talks with the Blues over the possibility of a new contract.

May 13: The news breaks that the defender has been offered a new deal. Terry takes to social media to explain that it is a 'different role' at the club. 

May 15: Terry gives an emotional address to Chelsea supporters after the final game of the season against Leicester at Stamford Bridge.

'We all want the same thing,' said Terry. 'I've said for a long time I want to finish my career here. I'll be speaking to the club over the next few days. I want to stay. I want to.'

May 16: Terry hints he will be staying at Chelsea when he cancels plans to hire the pitch at Stamford Bridge for a farewell party.

May 18: Terry pens a new one-year contract.

The 35-year-old is thrown into the air by Chelsea players after giving an emotional speech to supporters after the final game of the Premier League season against Leicester

‘Also, a special mention to the fans for their continued support. You’re the best in the world.’

Meanwhile, two days after being cleared of match-fixing, Conte said the case has left ‘a lasting scar’ on his life.

The man who will lead Italy into Euro 2016 had been accused of failing to report knowledge of attempted fixing at Siena in 2011.

Antonio Conte is not thought to view Terry as an automatic starter next season when he takes over at Chelsea

Conte admitted that the match-fixing charge, which he has been cleared of, has left a scar on his life

‘An acquittal doesn’t erase what happened over the last four years from my memory — having my home searched at five in the morning, TV reporters waiting outside my home at six, the newspaper headlines, all the people rushing to judgment,’ Conte said at the opening of Italy’s training camp in Florence yesterday.

‘There were a lot of situations that hurt me and my family and I can’t forget that,’ he added.

‘These are things which have left a lasting scar on my life.’