Bates says Terry's shock at being arrested can work in the centre-back's favour as "short-term pain for long-term gain".
Terry and team-mate Jody Morris both appeared in court to deny charges of assault and affray earlier this month following an alleged nightclub incident.
Terry has been suspended from selection from England international duty by the FA until the legal process has been completed.
Both players have, meanwhile, continued to be selected for first team duties by the club over recent weeks.
That included the first leg of the Blues' Worthington Cup semi-final against Tottenham a fortnight ago, in which Chelsea grabbed a 2-1 lead.
Ahead of tomorrow's second leg tie at White Hart Lane, Bates insisted Terry could still live up to past predictions of the likes of Tony Adams and Marcel Desailly that he was set to captain his country in the future.
The Chelsea chairman said: "I bumped into (Football Association chief executive) Adam Crozier in a restaurant last week and he agreed with me.
"This might be the salutary lesson that John needs to keep him on the straight and narrow because he could be England captain for the next 10 years. So it's worth short-term pain to ensure long-term gain. I'm sure he will be an outstanding captain for England."
Bates told Chelsea TV: "Tony Adams has said it before and of course, let's face it, he had his own problems and went to jail for drink-driving. But he has come back and has been a great force for good. A fine club servant and a fine club captain. Hopefully, John will be the same."