There's definitely more to this Terry saga than simply City making a bid, Chelsea rejecting it and Terry not wanting to move. As has been said, Terry would have come out publically and pledged himself to Chelsea by now if he was 100% certain to stay.
I still feel he's using this to try and get a wage increase from Chelsea rather than a move to City, but there's always that chance he feels he needs a 'new challenge' or that he won't be happy with Chelsea's wage offer/lack of wage offer based on City's interest and decides to move on. It's a long shot, but not beyond the realms of possibility.
I just want it sorted, one way or the other, and quickly. It's clear to anyone taking a look at our squad we need defensive help, especially with Kompany missing the start of the season. Lescott may or may not be joining us, Lucio is another named being linked, but whoever we bring in (and I think we need 2 central defenders, ideally Lescott as one of them to provide cover for Bridge at left back) we need to do so with a certain amount of haste.