By accepting the ban it means he will miss two games against Rio Ferdinand's Manchester United.
Terry had until 6pm on Thursday to appeal the four-match ban imposed on him for racially abusing QPR's Anton Ferdinand, but decided against it.
It means he will miss he will miss Saturday's game with Tottenham as well as the clash with Manchester United on October 28 and then the Capital One Cup clash between the two sides three days later. Chelsea's trip to Swansea will be the final game of his suspension.
In a statement Terry said: 'After careful consideration, I have decided not to appeal against the FA judgment.
GAMES TERRY WILL MISS
Tottenham (Premier League A) - October 20
Man United (Premier League H) - October 28
Man United (Capital One Cup H) - October 31
Swansea (Premier League A) - November 3
Man United (Premier League H) - October 28
Man United (Capital One Cup H) - October 31
Swansea (Premier League A) - November 3
'Although I'm disappointed with the FA judgment, I accept that the language I used, regardless of the context, is not acceptable on the football field or indeed in any walk of life.
'As I stated in the criminal case, with the benefit of hindsight my language was clearly not an appropriate reaction to the situation for someone in my position.
'My response was below the level expected by Chelsea Football Club, and by me, and it will not happen again.
'I am extremely grateful for the consistent support of Chelsea FC, the fans and my family.'
His decision to accept the ban means he will avoid coming face-to-face with his former England team-mate and Anton's brother, Rio, in the pre-match handshakes.
The Chelsea captain and his advisers had two weeks to study the full written reasons of the decision by an FA independent regulatory commission.
'Sorry is the hardest word to say but we have got to learn from it and move on.
'To get reconciliation, people have to accept what they have done is wrong, and there has to be some reconciliation because it is causing the game to implode from within. It has caused division among black players and among white players.'
Terry was accused of calling Ferdinand a "f****** black c***" in the 83rd minute of Chelsea's defeat at Loftus Road last October.
The panel said the Chelsea captain, 31, 'is not a racist' but were 'satisfied' his comments were used as an insult. The three-man panel said there was 'no credible basis' for Terry's claim he had only been repeating words he thought QPR defender Ferdinand had accused him of saying.
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