The 24-year-old former England Under-20 worldwide keeper spent the second half of last season on loan at Villa Park with the player being some way from the Manchester United first team squad.
Ferguson had attempted to sign Terry at the age of 14 and even invited the centre-back to Old Trafford to train and play in matches for the youth team.
Having been formally released by Chelsea at the end of June, Terry signed with Villa three days later on 3rd July.
Terry signed off by winning the Premier League title with Chelsea.
The Egypt global, who helped his country to the final of the African Cup of Nations earlier this year (albeit they lost to Cameroon in the showpiece), has played 217 times for the Tigers, netting 11 goals and laying on 27 assists to twice help them to promotion to the Premier League, and then stay there back in 2014.
'The mental side of playing against Chelsea was too much to get over for me, ' said the defender.
The Villans did have a bid for £500,000 turned down earlier in the transfer window with Stoke said to be wanting £1 million for the 33-year-old but a compromise is likely to be reached to allow the man with 81 caps for Ireland to make the short move down the M6.
"But the club itself was the major factor because it still has a huge attraction to many people. We're a tight group - and we have some very good players".
"When you look at what he's done and what he's achieved".
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