Smith was taken from Brentford and acquires Terry for his coaching role.
Smith is a long lasting Villa fan and appreciated accomplishment at Walsall somewhere in the range of 2011 and 2015 preceding changing to Griffin Park.
Previous Chelsea star Terry resigned from playing this week.
He spent his last season at Aston Villa, captaining the club to the Championship play-off last.
Estate have likewise designated another Sporting Director in the state of Jesus Garcia Pitarch.
He has been executive of football at Valencia and Atletico Madrid and shows up an awesome arrangement for the Midlands club.
Aston Villa CEO Christian Purslow stated: “These three arrangements speak to the beginning of another period and course at Aston Villa and we are charmed to anchor their administrations after a broad hunt.
“Senior member has an unmistakable and effective instructing theory and in addition a genuine comprehension of Aston Villa Football Club. He is likewise proficient about the Championship.
“The board invites him to the club and is anticipating working with him and his staff.