The England skipper is to face prosecution over allegations that he racially abused Queens Park Rangers defender Anton Ferdinand during the game at Loftus Road in October.
Ms Saunders, Chief Crown Prosecutor for London, said: “I have today advised the Metropolitan Police Service that John Terry should be prosecuted for a racially aggravated public order offence following comments allegedly made during a Premier League football match between Queens Park Rangers and Chelsea on 23 October, 2011.
“The decision was taken in accordance with the Code for Crown Prosecutors and after careful consideration of all the evidence I am satisfied there is sufficient evidence for a realistic prospect of conviction and it is in the public interest to prosecute this case.
“He is now summonsed with a criminal offence and has the right to a fair trial. It is extremely important that nothing should be reported which could prejudice his trial.”
The Football Association is waiting until the police investigation is concluded before making further comments.
Liverpool striker Luis Suarez was banned for eight matches on Tuesday after being found guilty of racially abusing Manchester United defender Patrice Evra.