Houllier, who managed Liverpool from 1998 to 2004, left his position as the technical director of the French Football Federation to return to English football.

"I could not turn down the opportunity to manage a club whose approach, both on and off the pitch, I have long admired," Houllier said.

"Aston Villa is one of England's biggest clubs and has an amazing set of fans.

"This is a tremendous challenge and one I am very much looking forward to taking on."

Martin O'Neill resigned from his post as Villa coach on August 9. Caretaker Kevin MacDonald filled his void on a temporary basis.

Houllier led Liverpool to the FA Cup, League Cup and UEFA Cup treble in 2001.

The 63-year-old also won two league titles with French side Lyon between 2005 and 2007.