The 35-year-old hobbled off in the first-half of the demolition of Newcastle United last week and was facing a race against time to be fit for the trip to Paris Saint-Germain on Tuesday.
Terry failed to make the game and while many felt he could return for the FA Cup fifth round clash with City this weekend, Guus Hiddink has confirmed the centre-back will have to sit that one out as well.
“He’s worked with the physios and was trying to be fit but there are too many problems for him to be fit for the weekend,” said Hiddink.
“We have a week and I hope that next weekend he will be available. I cannot predict it. I think we have to be cautious with him – we must be careful.
“Of course it is disappointing. He has been a leader for this club for years.”
Big blow for Chelsea is what is the glamour tie of the weekend and a match that neither team can afford to lose.
This has been a miserable season for Chelsea and the FA Cup offers them their best chance of silverwear this season. Lose at home against City and the Premier League champions will be playing out the string for the next three months.
For Manuel Pellegrini’s City, the wheels have fallen off since the official announcement that Pep Guardiola will be taking over this summer. Back to back home defeats against Leicester and Spurs have all but ended City’s title hopes. The Chelsea trip kicks off a season defining week for Pellegrini’s side. In midweek they travel to the Ukraine to meet Dynamo Kviv in the Champions League before returning home to meet Liverpool in the league cup final.