Terry, who underwent surgery on Sunday, has travelled with the rest of the team to Spain for the key encounter and has done enough to convince manager Avram Grant he should start the game.
After being held at home to Rosenborg in their opening Champions League game, Chelsea can ill afford to lose to Valencia.
The Blues have failed to win in their last four Premier League games and are still reeling from manager Jose Mourinho's exit from the club.
England skipper Terry, 26, suffered his injury in Saturday's 0-0 draw with Fulham.
Terry was injured in a challenge with Clint Dempsey early in the game and was taken off at half-time, despite wanting to continue.
Grant said: "He didn't complain about it at half-time and he wanted to continue but we didn't want to take a risk.
"For me, if it is something with the head, you don't have to take a risk.
"I didn't see the challenge so well. The players mentioned it and said it was an elbow."
There were suggestions Dempsey may be punished but it appears that will not be the case after referee Martin Atkinson did not report the incident to the Football Association.
England manager Steve McClaren said he still hoped Terry would be fit for the country's Euro 2008 qualifiers against Estonia and Russia later this month.
McClaren's side play Estonia on 13 October and Russia four days later.