The defender rolled his left ankle during Sunday’s 2-2 draw at Swansea and left the Liberty Stadium on crutches.
There were fears the 35-year-old may have suffered a fracture, but an MRI scan on Tuesday morning showed that Terry suffered only minor ligament damage.
In a post on his Instagram account, Terry wrote: “I have strained my ligaments in my ankle which means I will be out for 10 days.
“Absolutely gutted, but will be giving everything to get back playing.”
Terry’s diagnosis may not be as bad as was first feared but will still provide boss Antonio Conte with a defensive headache ahead of the Liverpool game.
Conte was unimpressed by some of his side’s defending at the Liberty Stadium, although Terry escaped culpability for either of the Swansea goals.
Returning Brazilian David Luiz, who was on the bench at Swansea, is most likely to replace Terry for the clash with Jurgen Klopp’s men.
The Chelsea statement read: “John Terry’s injury suffered in Sunday’s game at Swansea is strained ligaments in his foot. He will be out for approximately 10 days.
“Our captain was injured in the closing minutes of the 2-2 draw at the Liberty Stadium. He completed the game in pain and Antonio Conte confirmed afterwards the problem would need medical assessment.”