John Terry signs for Aston Villa

John Terry

Aston Villa have won the race to sign John Terry, who will drop down a division after being released by Chelsea.

The news was confirmed by Villa chairman, Tony Xia, on social media on Monday morning, with the Championship outfit expected to formally announce the deal later same day.

The former Blues captain will earn £60,000-a-week at Villa Park, and there is also a bonus written into his deal that is triggered if he helps lead the Villans back into the Premier League.

Terry will sign a two-year deal and head straight out to the Algarve where his team-mates have already begun their pre-season training.

The 36-year-old had been the subject of a tug-of-war between the Villa and fellow second city outfit Birmingham, with interest from West Brom, Bournemouth and Stoke in the Premier League.

His decision to go to the Championship is believed to be because he did not want to play against Chelsea immediately after departure from the west London outfit.

Villa coach, Steve Bruce, is understood to have offered Terry the chance of moving into coaching, according to The Sun.

The Barking-born centre-back spent 22 years at Stamford Bridge, winning every major domestic and European honour during that time.