Stamford Bridge hero wants to be re-united with old friends.
The Italian was sacked just minutes after the final game of the season against Everton and his successor is yet to be revealed.
Hiddink was named as the early favourite after a successful spell in charge at Stamford Bridge two years ago where he lost only one game and won the FA Cup.
Hughes resigned from his job at neighbours Fulham yesterday amid speculation he would take over at Aston Villa but both sides claim that is not the case.
It does leave the Welshman available to an approach from the club he played for three years in 1995 while Terry was coming up through the youth academy.
Terry admits he was sad to see Ancelotti go but believes Hughes has the right qualities to take charge at Chelsea.
“There’s a lot of speculation out there at the moment,” Terry told Sky Sports. “I was very sad to see Carlo go, and as a group of players we will wait for the club to make a decision.
“There’s a lot of managers being linked at the moment. Hughes is someone that hopefully the club will be talking to.
“I know Mark and his backroom staff and they have an understanding of the club and knowing how much the club means to the supporters will come naturally to them.
“So if he’s linked in he will be welcomed in by the players for sure.
“We had a great time under Guus. We had four or fve months under him and came to Wembley and won the FA Cup so he would be welcomed back.
“Whether we are going to get someone who knows the club or someone different, that’s out of the players’ hands and we will leave that up to the guys on the board.”