John Terry has signed a contract extension at Aston Villa amid interest from Derby County in him potentially replacing Frank Lampard as Rams boss.
Terry, assistant head coach to Dean Smith, has inked a new deal until 2021, having had just 12 months left on his previous deal.
The former England captain has been rewarded for a fine first season on the coaching staff at Villa Park, playing a key part in the club's promotion to the Premier League.
But it also happens at a time when Terry has emerged as a potential target for the Rams - whom Villa beat in the Championship playoff final - with close friend Lampard set to replace Maurizio Sarri at Chelsea.
Terry is interested in becoming a manager long-term, and is believed to have impressed Derby owner Mel Morris, who, despite declaring that there is yet to be an approach, is resigned to losing Lampard when his former club comes calling.
However, amid speculation Terry has now signed on to continue his coaching education with the newly-promoted Villans.
Villa CEO Christian Purslow said: "The board of Aston Villa is delighted with John Terry’s contribution to our club in his first year as an Assistant Head Coach.
"We admire his dedication and commitment to gaining more experience and learning under Dean Smith’s leadership in these formative years of his managerial career."
Dean Smith added: "I am really pleased that JT has extended his current deal as he is a pleasure to work with.
"We have had a successful start to our Villa coaching careers and JT has been instrumental in joining myself, Richard O'Kelly and Neil Cutler.
"He has complimented the team that we have and I have no doubts he will go on to be a top manager in the years to come.
"Our focus now is on the coming season and to try to continue the progress we have had in the past eight months."
