John Terry has agreed a new two-year contract to remain assistant manager at Aston Villa.
The former England and Chelsea captain was named as a potential replacement for Chelsea-bound Frank Lampard at Derby County.
But having played a key role alongside boss Dean Smith in guiding Villa back to the Premier League – beating Lampard’s Derby in the play-off final – Terry has opted to commit his future to the club.
After news of the contract extension was revealed on Wednesday, Villa boss Smith said: ‘I am really pleased that JT has extended his current deal as he is a pleasure to work with.
‘We have had a successful start to our Villa coaching careers and JT has been instrumental in joining myself, Richard O’Kelly and Neil Cutler.
‘He has complimented the team that we have and I have no doubts he will go on to be a top manager in the years to come.
Our focus now is on the coming season and to try to continue the progress we have had in the past eight months.’
Writing on his Instagram, Terry added: ‘I’m delighted to have extended my contract at Aston Villa. I’ve thoroughly enjoyed assisting, working and learning from the Gaffer, Richard and Cutts and look forward to doing so for the season ahead.
Now tougher challenges are ahead as we focus on making our mark on the most competitive league in the world.
‘I’m sure the fans will get behind us as they always do and help make Villa Park a tough place to come and play.’
Terry, 38, has impressed at Villa as he studied the trade and has been a positive influence on young players such as Tammy Abraham and defenders Tyrone Mings and Axel Tuanzebe.
But the five-time Premier League winner has decided he is best served learning underneath Smith at this stage in his career with Villa preparing for their first season back in the Premier League.
Villa CEO Christian Purslow added: ‘The board of Aston Villa is delighted with John Terry’s contribution to our club in his first year as an assistant head coach.