Terry 'not prepared' to be called a racist
The 31-year-old Chelsea defender told the Football Association (FA) a week after the incident on October 23 last year that racism was not in his character. A recording of the interview was played on Tuesday at Westminster Magistrates' Court.
"I have been called a lot of things in my football career but being called a racist, I am not prepared to take," Terry, who was listening to the recording in court, said in the interview.
"That's why I came out and made my statement immediately. I am not having Anton thinking that about me or anyone else.
"That's not my character at all."
Terry told FA investigator Jennifer Kennedy he was repeating back to Ferdinand what he believed had been said to him.
The high-profile case, based on foul language from both players, triggered the resignation of England's Italian manager Fabio Capello after the FA decided to strip Terry of the captain's armband for Euro 2012.
The case was adjourned until Wednesday.