Gary Cahill is pleased John Terry has signed a new contract at Chelsea, describing it as a "great lift" for the players and fans.
Terry penned a 12-month deal this week to extend his stay at Stamford Bridge after more than 17 years and 700 appearances for the London club, who will be managed by Antonio Conte next season.
There had been speculation the 35-year-old may leave England for China, but regular central defensive partner Cahill is delighted the situation has now been resolved.
He told BBC Radio 5 live: "It's important. All the lads are very happy, I am sure the fans are very happy, so it is a great end to the season in that respect.
"It is a great boost, a great boost for the club, it's a great lift for the players and obviously the fans.
"Although it kind of dragged on for a little while, it has been sorted now and we look forward to him being part of this squad like he has been for many, many years. It is fantastic news for us."
Cahill has now linked up with England following the conclusion of the Premier League season and is excited at the possibilities for Roy Hodgson's men at Euro 2016.
He added: "It is certainly a very good squad, it is an exciting squad.
"We feel like we've progressed so, for me, it's a very good squad and as an England player and fan an exciting squad."
England face Slovakia, Russia and Wales in Group B.
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