The 36-year-old defender ended a 22-year association with the Blues on Friday, making him a free agent on Saturday.
And he has now elected to drop down a division and move to the midlands to join Steve Bruce's Villans.
Centre-back Terry made over 700 appearances for Chelsea, captaining them on almost 600 occasions, and won 15 major trophies including five Premier League titles
"I am delighted to join Aston Villa," Terry told Villa's official website.
"It's a club I have admired from afar for many years - there are fantastic facilities at Bodymoor Heath, Villa Park is one of the finest stadiums in the country and there's a good group of players here, with an experienced and successful manager in Steve Bruce.
"I can't wait to get started now and look to help the squad achieve something special this season."
Source : PA