Terry has taken over the captain's armband again from the injured Rio Ferdinand, the Chelsea defender having lost the job last year following newspaper reports about his private life.
But since coach Fabio Capello announced the reinstatement of Terry the debate has taken the focus away from England's European Championship qualifier against Wales in Cardiff on Saturday.
Leader of the pack: John Terry (centre) and the England squad in training this week
'(It's) just business as usual, the manager's made the decision,' said Milner. 'Everyone's happy for JT. It's obviously disappointing for Rio. We're fortunate to have a number of leaders in this squad.'
Milner said Terry's attitude on the pitch made him a natural as England captain.
No distractions: James Milner is focused on Wales
'He puts his head in where a lot of people wouldn't. He leads off the field as well.
'The manager makes his decision and we stand behind them. JT is a leader, he might not have been captain over the last year but he's not changed the way he has been.
'The most important thing is leading on and off the field and as an England player he's been absolutely fantastic.'
Tottenham striker Peter Crouch admitted the focus had been on Terry returning as captain.
'There was a lot of talk about it. There are no problems with anyone,' he said. 'There was a lot of talk over unrest, but it was not an issue at all. John Terry has always been fantastic on the pitch, has led Chelsea to doubles. He's a great leader on the pitch and will be again for England.
'The manager likes defenders to be the captain and John has done it for so long. He`s been at Chelsea for years and has been captain for a long, long time.
'He wears his heart on his sleeve and tries to bring out the best in all others around him, which is why he is such a leader. All the players are happy.'
Crouch also reserved a word of comfort for the displaced Ferdinand. 'It's a real shame for Rio,' he added. 'He's a top-class player and a great lad and when he was here he was a great leader as well.
'It's a shame with the injuries and with him not being here. The manager has decided to change the captain and, with the armband being passed around in the last game, the manager wanted to stick with John Terry.'
Terry tells England stars: Say it to my face if you don't want me as captainMartin Samuel: Deafening silence ends the John Terry affairJohn Terry: Flawed but fearless - not one sign of remorse from England leaderSo, how exactly can England stop Wales' flying winger Gareth Bale?
Explore more:People: Rio Ferdinand, James Milner, John Terry, Peter Crouch, Fabio Capello Places: Cardiff, United Kingdom, Wales