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Published 22:31 10 Oct 2018 BST
Updated 22:35 10 Oct 2018 BST
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The former England defender captained the Birmingham club last season en route to a play-off final defeat to Fulham.
He has since announced his retirement from playing and was linked with the vacant manager's position at Villa.
Terry was also said to be in the frame to become Thierry Henry's assistant at Villa Park before the Frenchman reportedly opted against taking the post.
Villa have also appointed Jesus Garcia Pitarch as their new sporting director.
https://twitter.com/AVFCOfficial/status/1050129024721272839?s=19
A statement on the club's website reads:
'Aston Villa Football Club is delighted to announce the appointments of Dean Smith as our new Head Coach, John Terry as Assistant Coach and Jesus Garcia Pitarch as Sporting Director. 'Smith, a lifelong Villa fan, is known for his exciting and attractive brand of football which he implemented in his previous posts at both Brentford and Walsall. 'Terry spent the final year of his illustrious playing career at Villa Park as he captained the club to the play-off final last season and brings a wealth of experience with him to his new role from his time as skipper of both Chelsea and England. 'And Pitarch has occupied Director of Football roles at both Valencia and Atletico Madrid in his native Spain. 'During his time at Valencia, the club won the La Liga title and UEFA Cup and Atletico lifted the Europa League and the European Super Cup during his tenure. 'CEO Christian Purslow said: “These three appointments represent the start of a new era and direction at Aston Villa and we are delighted to secure their services after an extensive search. '“Dean has a clear and successful coaching philosophy as well as a real understanding of Aston Villa Football Club. He is also knowledgeable about the Championship. '“The board welcomes him to the club and is looking forward to working with him and his staff. '“John is one of the most decorated players in English football, has an affinity with the club and is ready to make the next step in his career working alongside Dean. '“And Jesus also brings a huge amount of experience in his particular role having worked with some of the biggest clubs in Europe. He will ensure the club has an integrated approach running from the academy through the U23s and into the first-team.”'

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