The 42-year-old, pictured, announced he was leaving the EVO-STIK League Southern Premier Division club's Bob Lucas Stadium next week on Wednesday, two days after chairman Chris Pugsley revealed he was looking for another role at the end of the season.
Fans will get a chance to say goodbye to the club's legendary keeper next Tuesday night at the Avenue Stadium when he takes charge for the last time against Gillingham Town in the final of the Dorset Senior Cup.
The Terras, who started the formal process of advertising for a successor to Matthews on Thursday, thanked their outgoing player-manager for his efforts in a statement wishing him well.
A spokesman said: "The club wish to place on record their thanks for the hard work and dedication that Jason has made during his tenure, not only as a manager as Jason enjoys legendary status at the club as a long serving goalkeeper.
"This is a sad day for directors and staff who consider Jason more of a friend than a manager and he will be warmly welcomed at the Bob Lucas Stadium any time in the future. We wish Jason all the best in his future football career wherever that takes him."
After kicking off his career in the youth ranks at Bristol Rovers, Matthews went on to play for Nuneaton Borough, Exeter City, Aberystwyth, Clevedon Town, Eastleigh, Bath City and Dorchester Town.
Matthews, who departs with Terras secure in mid-table and assured of their top flight status next season, first played for the Terras between 2002 and 2008 before returning at the start 2013-14 and becoming player-manager in December 2013. In his second spell with the club he's made more than 400 appearances.
* The Terras have set a deadline of 5pm on Thursday 13 April for potential candidates to apply for their soon to be vacant manager's post. For more information and to apply, visit theterras.com/index.php/2017/04/06/first-team-manager.
Image courtesy of Twitter/@theterras
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