Caretaker-boss Hiddink has insisted he is only working with the Blues on a temporary basis and will return to his job as Russia manager at the end of the season, leading to speculation Mourinho could be lined up for a sensational return to Chelsea.
It was reported that the Portuguese boss was favoured by the Chelsea dressing room, but captain Terry denies this.
"He has a good relationship with Roman Abramovich," Terry said of Hiddink.
"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 added in The Observer: "He's done brilliantly. He's on at us every day in training, and he doesn't let anyone get away with anything."
Asked about Mourinho, Terry said: "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."