The Chelsea skipper is alleged to have made racist comments towards Queens Park Rangers defender Anton Ferdinand in a league match on 23 October 2011.
A not guilty plea was entered on Mr Terry's behalf at Westminster Magistrates' Court on Wednesday.
He will now stand trial on 9 July, nine days after Euro 2012.
The Crown Prosecution Service (CPS) said Mr Terry, 31, is accused of a racially-aggravated public order offence.
Following Wednesday's hearing, the footballer's legal team said in a statement: "Mr Terry looks forward to the opportunity to clear his name.
By Dan RoanBBC Sports News Correspondent
The fact that Terry will not stand trial until July means he is now free to lead England into the European Championship, the Football Association, along with Chelsea, having made clear it will not suspend him.
However, it also means these serious charges will hang over him for a further five months.
Terry says he does not wish to talk about the case, but you can be sure he will be asked.
Some will worry about the effect this uncertainty will have over on his performances in the summer and the England team's morale.
"Mr Terry denies making any racist statement and will establish in court that he is not guilty of any such offence.
"Mr Terry has never racially abused another player in his entire career.''
Police questioned Mr Terry under caution in November and a file on the matter was sent to the CPS at the beginning of December.
The decision to charge Mr Terry was taken after police received a complaint from a member of the public after the Premier League match at Loftus Road.
The maximum sentence for the offence is a fine of £2,500.
As a summary offence under the Crime and Disorder Act, it will be fully heard in a magistrates' court.

Chanel's creative director accused Streep of rejecting one of his dresses because she found a different designer who was willing to pay her.
He has since said he "misunderstood" - but that has not calmed Streep's ire.
"I do not take this lightly, and Mr Lagerfeld's generic 'statement' of regret for this 'controversy' was not an apology," she said.
She also criticised fashion website WWD, which originally reported his quotes.
"He lied, they printed the lie, and I am still waiting," she said in a statement.
The dispute began when WWD published an interview in which Lagerfeld said he had started work on a dress for Streep to wear to Sunday's Academy Awards.
But he claimed he was then told by one of the actress's representatives: "Don't continue the dress. We found somebody who will pay us."
Referring to Streep, he said: "A genius actress, but cheapness also, no?"
The designer later issued a statement admitting he had "misunderstood that Ms Streep may have chosen another designer due to remuneration" and said he regretted the controversy.
However, Streep, who has her 20th Oscar nomination this year for Florence Foster Jenkins, hit back.
She said Lagerfeld "defamed me, my stylist and the illustrious designer whose dress I chose to wear, in an important industry publication".
Her statement added: "The story was picked up globally, and continues, globally, to overwhelm my appearance at the Oscars, on the occasion of my record-breaking 20th nomination, and to eclipse this honour in the eyes of the media, my colleagues and the audience."
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England football captain John Terry will stand trial for alleged racist abuse in July, after the final of the European Championship in July.
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Meryl Streep's choice of dress for the Oscars has sparked a bitter row between the star and designer Karl Lagerfeld.