Blues skipper believes Arsene Wenger's team can down the Red Devils at the Emirates on Sunday after his own side came from behind to keep their title chances alive
Frank Lampard was rewarded with a first half goal despite his strike not crossing the line and replays showed that Salamon Kalou's late winner was offside, but Chelsea got the vital three points.
Attention now turns to Arsenal's clash with Manchester United at the Emirates, with Chelsea desperate for the Gunners to get all three points to give Carlo Ancelotti's men a chance of regaining their Premier League crown.
Terry is confident in Arsenal's ability to get a result, reflecting on how his own side were comfortably beaten 3-1 by at the Emirates back in December.
"We got a bit of a pumping from Arsenal earlier in the year," the defender admitted to Sky Sports.
"They are going up against a very good Manchester United side but if anyone can, Arsenal can.
"One thing about Chelsea is that we will never give up. Manchester United have said in the week that we're their biggest challengers.
"We showed the character and the fight right until the end. We have the hunger and determination to win that Premier League trophy again."
Frank Lampard scored Chelsea's equaliser and he echoed his captains sentiments, believing that his side can win the league.
"You saw the character today and you've seen it in the last six weeks," he said.
"You can talk about the goals but our character and the way we played meant that we deserved to win it.
"I was due one [a goal being given that didn't go over the line] - I had a big one go against me last summer!
"But you get what you deserve and we created enough and we were bright enough to win the game.
"United are in the driving seat and it's theirs to lose but if they do slip up we are in the position now where we want to have a real go to try and do it."