The 24-year-old Blues captain was honored with the accolade at the annual gala awards dinner at the Grosvenor House Hotel in London.
Two of Terry's Stamford Bridge team-mates Frank Lampard and goalkeeper Petr Cech had also been shortlisted along with 2004 winner Thierry Henry Liverpool skipper Steven Gerrard and Crystal Palace striker Andrew Johnson.
But it was the England centre-back who topped the poll of his fellow professionals after developing this season into a strong leader for the west London club helping Jose Mourinho's win the Carling Cup progress through to the semi-finals of the Champions League and stand on the verge of securing the Premiership crown.
And after receiving the 2005 trophy Terry reflected: "It is unbelievable and the ultimate accolade to be voted for by your fellow professionals whom you play against week-in and week-out.
"You just go out there and try to give it your best and for them to show their appreciation and vote for me is fantastic."
The Chelsea skipper added: "For Petr Lamps and myself to be voted in it was important that one of us won it. It has been a real special season with Chelsea and this just adds to it.
"I want to thank all of my team-mates because without them this would not have happened. It is my first year as captain and they have helped me a lot on and off the pitch."
Chelsea will be crowned Premiership champions if Arsenal fail to defeat Tottenham at Highbury on Monday night or failing that if the Blues beat Bolton away at the weekend.
Terry reflected: "I can understand what the manager is saying but for me I would like to get it wrapped up as soon as possible.
"We still know we are one game away and it is important that we get that win under our belts then put the champagne on ice and concentrate on the Champions League."
The England defender added: "We have still got a lot to play for. We have got the Champions League semi-final coming up and are just one win away from the Premiership so hopefully I am going to be lifting a few more trophies."
The Chelsea skipper revealed he had left his manager in no doubt as to which competition he wanted most.
"The Premiership is the first and foremost and I said that to the manager Terry added. "Just after telling me I was captain he said to me 'what one do you want?' and I looked him in the eye and said: 'The Premiership'.
"That is the big one for me and the Champions League would come second."
It has been a remarkable first season in English football for Mourinho who arrived at Stamford Bridge over the summer making it clear he had no intentions of letting his European success with Porto in 2004 be the last he would enjoy.
And Terry commented: "I think the team spirit we have got at the club this year has been the key. We have got no superstars everybody respects each other both on and off the pitch and we get on well.
"We have got some great players and a great manager who has worked wonders for us and that is shown by the fact we are top of the league and are still in the Champions League.
"He is a great man personally and all the lads fully respect him and want to keep winning for him - he has instilled that winning mentality in us all.
"The manager has rotated players given us days off not trained us too hard and you can talk to him if you are feeling tired and he tells you to stay inside and be ready for Saturday.
"That relationship with the manager is special and we are probably the only side which has that.
"After I was made captain my confidence flew up during pre-season and with him telling you that you are the best you feel a million dollars and are on top of the world."