Chelsea captain John Terry is understood on the brink of agreeing a new contract with the Stamford Bridge club.

He had yesterday said he was confident an agreement could be reached despite negotiations supposedly having stalled over the central defender's wage demands.

However, it has been reported today that a deal has been reached which would see him earn £6.8 million a year and make Terry the highest paid player in England.

Terry, meanwhile, has reportedly suffered a broken toe during Chelsea's 1-0 win against the Suwon Bluewings in California.

The England captain played on after picking up the injury and came off at half-time in the match against the Korean side at the Home Depot Center in Carson.

His substitution at the interval appeared to have been planned as manager Jose Mourinho used 22 players during the game in order to give them all 45 minutes each.

Terry has suffered a number of injuries this year and his back injury at the turn of the year was key as Chelsea lost ground on Manchester United in the Premier League title race.

England manager Steve McClaren will be keeping an eye on Terry's progress ahead of the Euro 2008 qualifiers this autumn.