Shorey, 27, has been capped at England level and will look to make the left back role his own in the absence of Wilfred Bouma.
Shorey, who has two England caps under his belt, was a big part of Reading's promotion to the Premiership in the 2006.
But, the Royals suffered the agony of relegation on the final day of last season and their left back was immediately linked with a move away from the Madejski Stadium.
Villa were forced to battle with Sunderland and Portsmouth for the signature of the former Leyton Orient man, but Martin O'Neill won the race.
Shorey was much revered at Reading with the 53.1 per cent of fans voting him in the club's best all time XI.
He joins the predominantly English squad at Villa Park and O'Neill is clearly building a balanced team with plenty of Premiership experience.
Shorey joins Brad Friedel, Brad Guzan and former team mate Steve Sidwell who have all signed for Villa this summer.
Sidwell may have had an influence on Shorey's decision and fans of the Midlands outfit will be eager to see just how the former Royals link up.
Young
Another piece of news from Villa Park concerns Middlesbrough right back Luke Young.
Villa have had a bid of around £4m accepted by the Teeside club and Young is expected to complete the deal tomorrow.
It will be odd for the Claret and Blue to actually receive a player from the Riverside after a number of players and coaching staff over recent years left the club to head north.
Notable transfers from Villa to Boro include Gareth Southgate and Ugo Ehiogu who both departed claiming they wanted to play for bigger clubs.
It seems the Midlanders have got a touch of revenge as the loss of Young looks set to cause uproar among fans of Southgate's side.
Many cannot understand the decision to sell a player, who they describe as the most consistent performer last season.
But, Villa are set to complete a deal for the former Charlton man on Friday, which will finally see the side play with a naturalised right back.
Olof Mellberg played admirably in the role throughout last season, but it was clear that a new signing in the position was necessary even before the Swede left to join Juventus.
Hopefully Young and Shorey will make Villa's defence one of the most impregnable in the Premiership.