Terry crisis for England and Blues

Chelsea are expected confirm today that their central defender will miss Sunday's game with Everton at Stamford Bridge after failing to recover in time from knee surgery.

Terry had an operation on 19 October after pulling out of England's defeat in Russia when his knee 'locked-up' after a training session on the plastic pitch in Moscow.

Manager Avram Grant hinted last week that he would not want Terry playing for his country if he had not proved his fitness with his club.

The only chance that he has to do that is on Sunday in Chelsea's last game before the international break.

England coach Steve McClaren names his squad today for the friendly in Austria next Friday and the crunch clash with Croatia at Wembley on 21 November. Terry will be included in the list of names but is likely to return for treatment at Chelsea's Cobham training ground as soon as the squad assemble on Monday.

McClaren has huge defensive worries. Rio Ferdinand, suspended for the Croatia game, is not likely to be considered but Micah Richards will almost certainly be included despite lingering fitness doubts. The coach also faces big calls over Ashley Cole, who has not played a game since injuring his ankle during last month's win over Estonia. With Ferdinand out, Jamie Carragher retired from international football, Wes Brown operating at right-back for Manchester United, Ledley King still injured, Jonathan Woodgate and Michael Dawson badly out of form, McClaren's central defensive cupboard is looking pretty bare.

Terry's injury is also a huge blow for Chelsea who will be without both Terry and injured goalkeeper Petr Cech for the first time since beating Wigan 4-0 at Stamford Bridge on January 13. The Blues dropped vital points over the Christmas period last year when both were missing and never made up the lost ground on champions Manchester United.

Chelsea chief executive Peter Kenyon is already making plans to bring in more players in the January transfer window with Didier Drogba missing due to the African Nations Cup - he may now have to look for cover elsewhere.

Former captain David Beckham will also be back in the squad today but could fall one match short of his century of caps if England fail to qualify for Euro 2008.

Assistant manager Terry Venables urged the Football Association today not to take a 'knee-jerk' reaction should Russia beat Israel next Saturday meaning that England are effectively out of contention before they meet Croatia.

Venables said: "If the FA is convinced they have someone better who will instantly transform us into World Cup winners then fine."