Terry, 29, has agreed a new one-year deal that will keep him at Brisbane Road until the end of next season.
O's boss Martin Ling told the club's official website: "I'm very pleased that Paul has agreed to sign his new contract.
"All three of Alton Thelwell, Glenn Morris and now Paul have accepted their new deals and that's a lot better than the situation we had last year.
"Paul had an excellent season and he'll be looking to build on that now - I'm delighted that he's staying with us." Terry played in 49 games for the club last term following his switch from Yeovil 12 months ago.