I've been thinking about this a lot lately. Now I like Terry and think he could be a good player, but with the 2017 draft being a very guard heavy draft I don't see him keeping a spot. Just think about the prospects:
Fultz, obviously takes Terry's bench role away (I'm very high on Marcus)
Ball, same as Fultz
Jackson, he's not a PF so you'd play him as a wing. Aka probably bench SG.
Tatum, this might fit if you put one of him or Jaylen at the 4
Giles works but I'm iffy on his injury history
Monk, SG that takes Terry's role
Isaac would bring the same problem as Tatum
Smith, same as Fultz and Ball
That right there is your top 8 prospects and there's no way Terry takes playing time over any of them.
Furthermore, I don't see Terry in green next season. If you get the chance to flip him and a pick for Noel (even for a one year rental and rights to him as an RFA) you gotta do it.