The former England defender trained with his team-mates on Monday morning after limping out of the club's 5-1 win over Newcastle United on Saturday, but he has not been deemed fit enough to travel to France for the Round of 16 clash.
Terry was replaced by Baba Rahman at Stamford Bridge, the versatile left-back filling in at centre-half with Kurt Zouma also injured.
While the 35-year-old will miss the clash with PSG Oscar has travelled with the squad to Paris.
READ MORE | 'Chelsea must prove worth against PSG'
Oscar failed make the matchday squad for the encounter with the Magpies due to a calf injury, though he may feature against Laurent Blanc's side.
The meeting at Parc des Princes will be the third time in the last three seasons that the two teams have faced off, with Chelsea progressing in 2014 and PSG emerging triumphant last year.
The French champions are yet to lose in Ligue 1 this season, while the Blues sit in 12th in the Premier League.