On 21 May 2006 the state union of Serbia and Montenegro dissolved, thus suddenly turning FSS into the nationwide football association. Following the 2006 FIFA World Cup, Terzić assumed his job with newly expanded jurisdictions. As one of his first orders of business, he decided to show the door to national team head coach Ilija Petković and hire Spaniard Javier Clemente who thus became the first foreigner behind the national team's bench. Terzic also, the media pressure led by the journalist Mihajlo Todić, decided to change the colors of the national team from the traditional blue to red and insisted that the new national team jersey contain the state coat-of-arms instead of the FA logo.
