The pair clashed in the first leg between the two sides at the Vicente Calderon in April but Terry says the incident is long forgotten as he welcomed the striker’s £32 million arrival.
“Everyone remembers the square-up we had in the first 10 minutes of the first leg of our semi-final game against Atletico Madrid last season, after which I thought ‘fair play’,” Terry told Chelsea’s official website.
Chelsea went on to be eliminated in the second leg at Stamford Bridge with Costa scoring a penalty and Terry got a first-hand look at the striker’s talent.
“First of all, his movement and his strength are really good – I was really surprised by it,” Terry added.
“He holds the ball up very well, he has got great movement and he is really physical, but he is very clever with his strength and the way he uses his body. He could be a very good signing for us.”
Chelsea’s raid on La Liga champions Atletico continues with the club confirming they have reached an agreement for left-back Filipe Luis, while Thibaut Courtois will return form a three-year loan spell in Madrid.
It is expected that Atletico midfielder Tiago Mendes will also return to Stamford Bridge, having been signed by Jose Mourinho in his first spell at Chelsea.