The Crown Prosecution Service (CPS) released the decision earlier today, which is in relation to an incident in a game against Queens Park Rangers on October 23.
Chelsea were beaten 1-0 at Loftus Road and Terry is alleged to have used racist language towards Queens Park Rangers defender Anton Ferdinand.
The 30-year-old has continually denied making racist comments towards Ferdinand.
Chief crown prosecutor for London, Alison Saunders, said in the CPS statement:
“I have today advised the Metropolitan Police that John Terry should be prosecuted for a racially aggravated public order offence following comments allegedly made during a football match between Queen's Park Rangers and Chelsea on 23 October.
“The decision was taken in accordance with the Code for Crown Prosecutors and, after careful consideration of all the evidence, I am satisfied there is sufficient evidence for a realistic prospect of conviction and it is in the public interest to prosecute this case.”
Chelsea football club have responded to the CPS statement on the club’s official website:
“Chelsea Football Club today received notification that the Crown Prosecution Service has charged John Terry with a racially aggravated public order offence.
“John has made it clear he denies the charge and is determined to do all he can to prove his innocence.
“Chelsea FC has always been fully supportive of John in this matter and will continue to be so.
“The club finds all forms of discrimination abhorrent and we are proud of the work we undertake campaigning on this important issue.
“Chelsea will not be commenting further on the subject while the legal process runs its course.”
Terry is due to appear before West London Magistrates Court on February 1.