Terry has been limited to a bit-part role during Chelsea's charge to the Premier League title this season but will still lift the trophy following the final game of the season at home to Sunderland on Sunday.
After scoring on his first Premier League start since September during the 4-3 win over Watford on Monday night Terry refused to rule out the possibility of calling time on his career altogether having already announced his intention to leave Stamford Bridge.
However, Conte believes that the 36-year-old should instead look for a move elsewhere as he still has the desire to play regular first-team football.
When asked whether Terry should retire, Conte told reporters: "No. Absolutely [not]. Otherwise he stays here. John wants to continue to play. I wish for him and his family the best. Chelsea will be always his home.
"When you arrive at this moment and your heart, your head and your body tell you continue to play, because you want to play, it's right. This is the right final for John."
Terry has made 716 appearances for Chelsea, scoring 67 goals.