However, Chelsea say an offer could still be made to keep their long-serving captain at the club.
“Whether he stays, whether he goes – in the last option, he deserves a huge goodbye,” Hiddink said.
“(But) it’s never goodbye with those players, because I think in the near future, whatever happens, they can have a big impact in clubs.”
The Blues defender made his debut for the club in 1998 and has since made 703 appearances in all competitions.
He was sent off in Saturday’s 3-2 loss at Sunderland and because it was his second dismissal of the season, he is suspended for Chelsea’s final two games against Liverpool and then Premier League champions Leicester City at Stamford Bridge.
However, Hiddink admits the decision over Terry’s future does not rest with him as new head coach Antonio Conte is set to arrive in the summer.
“When I make a judgement on how he plays and his fitness on his age, he’s able to play, he’s able to continue,” Hiddink added.
“Where? What the near future is is up to the club, it’s not for me to make declarations on that.”
Since breaking into the first team 18 years ago, Terry has made 483 Premier League appearances, winning four titles, five FA Cups, three League Cups, the 2012 Champions League, the 2013 Europa League.