Since his debut with the first team in 1998, Terry has worn Chelsea's jersey in 713 matches, in which he has scored 66 goals, reports Efe.
In a statement released on the club's website, Chelsea said: "John Terry and Chelsea Football Club jointly announce our captain will leave the club at the end of the season."
"Everybody at Stamford Bridge would like to express our enormous gratitude to John and wish him the very best of luck for the future," the club added.
Terry, who spent most of his career at the London side, said: "After 22 years there is so much to say and so many people to thank at this great football club.
"From coaches, team-mates and staff to the fans who have given me so much support down the years, I can't thank you enough. There will be opportunities for me to speak further about this over the coming weeks."
Commenting on his future plans, the 36-year-old said: "I will decide on my future in due course, but for now I am committed to helping the team achieve success this season."
The centre-back concluded by saying that he has always had a fantastic relationship with the club, which he said "will continue beyond my playing days".
Terry, Chelsea's most decorated player, won 14 major honours with the Blues, including one Champions League trophy, four English Premier League (EPL) titles, one Europa League, five FA Cups and three League Cups.
The statement added that both the club and Terry look ahead to the possibility of him returning to hold other positions off the field.
"He is, as the famous banner reads, our captain, leader, legend, and we wish John the very best of luck in the next chapter of his magnificent career," the club said.