The Blues legend put pen to paper with Championship outfit Aston Villa after revealing he didn’t want to come up against his former side.
But the legendary Red Devils manager believes the 36-year-old could still do a job in the Premier League, according to The Sun.
Terry snubbed Birmingham City to link up with Steve Bruce’s side last week, signing for the Villans on a one-year contract.
He also turned down the opportunity to go abroad, after he was linked with big-money moves to both the MLS and Chinese Super League.
Terry was recently filmed signing Ben E. King track Stand By Me in front of his new teammates as part of his initiation at Villa Park.
The veteran centre-back and former England captain, who signed for the Villans for free, even threw in some dance moves for good measure.
Upon securing Terry on £60,000-a-week wages, Villa boss Bruce said: “When you’re the most decorated then you’ll certainly cost a fair few quid. He’s worth every penny.
“I’ve watched him from afar for a long time now and to get him here will be a great coup for the club.
“When you look at what he’s done and what he’s achieved. We’d love to be signing him when he was 26 not 36!
“But physically, he’s in fantastic shape for someone of his age. It’s a statement of intent to get someone of his calibre to come and be the big player we all know he is.”