Nigel Pivaro has agreed to reprise his role as the Weatherfield villain, who is the wayward son of the late Jack and Vera (Bill Tarmey and Liz Dawn) and father of current resident Tommy (Chris Fountain).
When he makes his return, Terry has no idea that Tommy is living on the street. Dramatic scenes are then expected to follow when the reasons for his comeback become clear.
Pivaro commented: "I am elated to be returning to Coronation Street, which as a Salfordian has been part of my life for nearly 50 years - not just as a character in the show, but as a fan long before becoming an actor.
"I have lived with Terry for more years than not now and have come to realise that he exists in the minds of so many people that he is almost real.
"Despite enjoying so many other acting roles and spending the last five years as a journalist writing for a range of newspaper titles and making documentaries with the BBC's Inside Out series, I am always proud to carry Terry with me. Therefore when producer Phil Collinson talked about Terry returning to the Street, it was an offer I did not want to refuse."
He continued: "Part of the excitement is that the show has changed so much with so many different characters and set ups - it will present Terry with a completely different landscape to that which he knew before. I am going to enjoy playing Terry rediscovering his roots, the changes that have taken place and his reaction to them.
"It will be strange and a little sad without my old sparring partners, Bill and Liz, with whom I had forged such a strong working and personal relationship - but I relish creating an interesting new rapport with Chris, who plays Terry's son Tommy."
Coronation Street boss Phil Collinson added: "I'm very excited to be welcoming arch villain Terry Duckworth back to Coronation Street. I grew up watching him duck and dive and break his parents' hearts - a deliciously evil performance from Nigel Pivaro.
"This time, though, he'll not only be blighting the life of his son Tommy but the lives of every resident of Coronation Street with a typically audacious scheme."
Terry has made numerous appearances on Coronation Street since his debut in 1983. He was last seen in 2008 on the day of Vera's funeral.
> Read Digital Spy's recent interview with Chris Fountain
> Read more Coronation Street spoilers and news
Watch a preview of Friday night's Coronation Street double bill in the video below: