After a 2009-10 season that saw Chelsea scoop Premier League and FA Cup honours, the trophy cabinet will sit empty as the Blues came up short domestically and in Europe.
Chelsea's failure to bag any silverware has put Ancelotti under real pressure, with the Italian admitting his future is out of his hands ahead of a meeting with owner Roman Abramovich.
Abramovich's demands for success are high, but Terry wants Chelsea to keep faith with Ancelotti.
"He's got my full support," Terry said. "I love Carlo. He won the Double in his first year and this year the injuries and releasing players has been tough for him.
"When Mourinho was here we had a big squad but we miss that. Somewhere in between where we are and what we had would be ideal."