The Chelsea skipper's contract expires at the end of the season and he is yet to agree terms on a new deal.
It is reported that the club have offered him a new one-year extension, which is believed to be worth around half of his current salary.
"I wonder if Manchester City would consider a daring raid. If they could pull it off, they get to weaken one of their rivals and they end up with Terry and Vincent Kompany in a mighty partnership," he wrote in his Daily Mail column.
"It would take a minimum two-year contract to drag Terry from Stamford Bridge, where you can imagine he would ideally like to finish his career as a one-club player. I can't see him leaving, but I can see City — who have tried to sign him before — enjoying the mischief.
"Terry in another club's shirt seems unimaginable...or does it?"
Terry has spent his entire career at Chelsea and made his first-team debut in 1998.