The central defender is currently serving a four-match ban imposed by the FA for racially abusing Queens Park Rangers defender Anton Ferdinand last season.
However, the 31-year-old is available for Champions League matches, and Di Matteo wants him to play in them.
"No," he said, when asked if Terry could be given a break. "It has been a delicate issue and we are going to continue working with the authorities to eradicate discrimination.
"The board has made the final decision [to keep Terry as captain] and we can focus just on our football while keeping in mind that we have responsibilities to keep working towards a more respectful world."