With Hiddink having impressed since taking over from the sacked Luiz Felipe Scolari on a temporary basis, there have been widespread calls for the Dutchman to take the reins long term.
Captain Terry feels the close relations shared by Hiddink and Blues owner Roman Abramovich could lead to an accord being struck, despite the experienced tactician repeatedly expressing his intent to return to his role as Russia coach at the end of the season.
"He has a good relationship with Roman Abramovich," Terry said of Hiddink in The Observer.
"Things have gone very well and I'm sure there will be talks ongoing. If we keep progressing there's only going to be one option.
"He's done brilliantly. He's on at us every day in training, and he doesn't let anyone get away with anything."
No Mour return talkWith Hiddink's future very much in the air there have been whispers that Mourinho, still in his first year at Inter Milan, could return to West London.
The Portuguese retains strong bonds with a number of Chelsea's players and has previously intimated that he would not rule out the prospect of managing the Blues again, but Terry feels it is important to look to the future rather than reminisce about past glories.
He added: "Listen, Jose was a great manager and had some great times here. But it's someone else's turn now to kick on.
"Mourinho is a world class manager, a lot of the players are still in contact with him. But we need stability at the club now. The manager's done brilliantly and got us playing freely. But it's down to the board to make those decisions."