Speaking at the Millennium Stadium, Terry said: “I am delighted to take on this role and eagerly anticipating the exciting challenge of coaching the team.
"As the current world champions of deaf rugby, I’ll be looking to further develop their potential and build upon the successes of recent seasons.”
Team Manager Geraint John, said: “This is great news for the development of deaf rugby in Wales. It’s a fantastic opportunity for the players to work alongside such a highly respected person who has achieved so much in the game and made a huge contribution to Welsh rugby.”
He continued: “As a proud Welshman and with his knowledge and skills gained throughout his career, both as a player and a coach, we are confident that we have the right man to lead us forward on the field."
Wales are the present Deaf Rugby World Champions having defeated New Zealand at the inaugural 2002 World Cup in Eden Park, Auckland.
Players representing the team have an average hearing loss of 25dB across both ears.