John Terry believes Jose Mourinho's new contract at Chelsea is an ominous sign for the club's rivals.

With Jose Mourinho set to sign a new deal at Chelsea, captain John Terry says that can only be good news for the club and bad for their rivals.

Mourinho is reportedly close to agreeing terms on a fresh four-year contract at Stamford Bridge, as he continues his love affair with the Premier League champions.

In his second season back at the club in 2014-15, Mourinho won the title - adding to the two he won in his first spell - and also claimed the League Cup with victory over Tottenham at Wembley.

And Terry, who played every minute in the league last season, is delighted the Portuguese will be extending his stay at Stamford Bridge.

"It's great news for the club but terrible news for everybody else because the other managers know that he finds ways to beat teams, he knows people inside out, on and off the pitch," he told the London Evening Standard.

"Whether you're a player or manager, he does his groundwork. He knows everything.

"The manager has a lot of great records against clubs and other managers. It must play on their minds.

"When other big teams sign big players you do think 'oh', but it must be the same for them when Mourinho signs his contract at the club.

"It's excellent news for the squad because it brings stability to the club. The fans love him because of what he’s done.

"For the whole place, stability is key for us, which we missed over the previous five or six years he was away.

"On the first front I was delighted to have him back and now, secondly, I am delighted he will stay for a few more years. It's stable here, it's calm."