The Chelsea icon believes Sancho would fit in perfectly with the club’s academy graduates under coach Frank Lampard.
The Englishman is one of the most coveted players in Europe, having been in fine form so far this season, scoring 17 goals and providing 19 assists in 31 games for the Bundesliga outfit.
Sancho has been widely linked with a return to the Premier League this summer, with clubs like Chelsea, Manchester United and Tottenham all thought to be yearning for his signature.
Terry believes Chelsea should do everything possible to secure the 19-year-old’s signature as he has what it takes to succeed at Stamford Bridge together with Mason Mount, Tammy Abraham and other academy graduates who came through the ranks following a transfer embargo placed on the Blues by FIFA.
"I think the young lads have shown their potential," he told Frank Khalid of Chelsea's latest academy graduates.
"We spoke at the start of the season about the likes of Tammy and Mason coming into the squad and they've shown that they're capable of playing.”
"I think Sancho is one of the best young players in the world at the moment, so he'd be a great addition to Chelsea's squad.”
"It would make us better as well, but the ones that have come through, the Billy Gilmours, Tammy, Mason, Reece [James], it's endless isn’t it? There have been so many positives this season.”
"So I think every Chelsea fan, since I came through the ranks, that's all Chelsea fans wanted to see: the youth team players and the younger generation coming through and making their first team debuts. We've seen that in abundance this year."
Sancho joined Dortmund from Manchester City in 2017 and has gone on to score 31 times and make 36 assists in 90 appearances.
