What you're after is the bash PS1 variable. To get what you want, you need to export this variable from .bashrc, which is executed on login.
The PS1 you want should look like this:
export PS1="[\u@\h \W]$ "
place that in .bashrc in your home directory. Or just run it as a command from the shell if you want it just temporarily.
If you want colors on there, here's the one that I've used for years, slightly modified to suit your question:
export PS1='[\[\033[1;33m\]\u\[\033[1;35m\]@\[\033[1;32m\]\h\[\033[0;36m\]\W\[\033[1;37m\]]\$ \[\033[0;37m\]'
Disclaimer: Everyone but me thinks the above is ugly.
On a related note: You should avoid telnetting into your machine, as telnet is very insecure. I highly recommend using ssh instead.