It was initially thought the Blues legend would move to LA Galaxy but both Second City clubs courted Terry heavily and he is determined to prolong his football career in England.
Terry’s decision is a huge blow to Birmingham City manager, Harry Redknapp. He hoped to persuade the centre back that Villa’s bitter rivals had a better chance of promotion to the top flight.
However, bookmakers have already installed Steve Bruce’s men as favourites for promotion this season, with Birmingham outsiders to feature in the race for a Premier League place.
The former England captain met Bruce recently in Portugal and discussed a potential move to Villa Park during a round of golf. Subsequently, Villa’s owner, Dr Tony Xia, rubber-stamped an offer believed to be in the region of £60,000 per week.
This morning’s Daily Telegraph claims that West Brom, Bournemouth and Swansea also made offers to Terry, as well as clubs from China. However, it’s understood the potential of £4m pa from Villa has swung the deal in their favour.
Winning promotion back to the Premier League would be a crowning glory for Terry, and it would be interesting to see if he remained at Villa to walk out on the turf at Stamford Bridge in the colours of another club.