Spanish agent Francois Gallardo claimed on Thursday morning that Terry was mulling over a move to Valencia after deciding to leave Stamford Bridge.
"Valencia are negotiating, and I am involved in person," Gallardo told Radio Intereconomia.
"The offer is on his table. The player is out of contract in June and will not renew there for several reasons at Chelsea and he wants to come to Spain.
"He asked to leave. It's real. This has been going on for 15 days and two meetings have already took place. I think he will accept."
The Blues were quick to rubbish the claims, however, with a club spokesman telling Press Association Sport that the story was "nonsense."
Terry, who has 18 months left on his deal at Stamford Bridge, is currently serving a four-match ban for racially abusing Anton Ferdinand.
The former England skipper has played for the London club throughout his professional career.
Source: PA
Source: PA