Terry, 36, replaces Wales international and fellow central defender James Chester as Villa captain having signed a one-year deal with the club earlier this month.
"Aston Villa are pleased to announce John Terry as captain. Terry will be skipper for the 2017/18 campaign," the club said in a statement on their website.
Terry will wear the armband for the first time in a pre-season friendly against third-division Shrewsbury Town later on Saturday.
The ex-England defender left Chelsea at the end of last season after 22 years at Stamford Bridge, where he won five Premier League titles, five FA Cups and the 2012 Champions League.
Jintana Panyaarvudh
Hamilton storms to British GP pole
SILVERSTONE, United Kingdom, July 15, 2017 (AFP) - Lewis Hamilton stormed to a provisional fifth Silverstone pole of his career after a dazzling performance during a rain-affected qualifying session on Saturday for the British Grand Prix.
The Briton thrilled home fans with a devastating quickest lap of 1min 26.600sec to finish 0.547sec clear of Ferrari's Kimi Raikkonen, although Hamilton was under investigation for potential impeding.
Championship leader Sebastian Vettel was left frustrated in third in the second Ferrari ahead of Valtteri Bottas in the second Mercedes.
Bottas, however, faces a likely five-place grid penalty for an unscheduled gearbox change, while stewards were looking into an incident in which Romain Grosjean claimed he was blocked by Hamilton.
Max Verstappen was fifth for Red Bull ahead of Nico Hulkenberg of Renault, Sergio Perez and his Force India team-mate Esteban Ocon.
Stoffel Vandoorne took an encouraging ninth for McLaren ahead of Grosjean of Haas.
"You always try to save the best till last," said Hamilton, who closed to within one of Michael Schumacher's record of 68 poles. "I felt very comfortable in these conditions - they are the conditions we grew up racing in here in England."
"It felt ok, but the conditions were not easy, changing a lot," said Raikkonen. "The car felt the best it had this weekend, but not quite fast enough for first place."
Vettel said: "The car came alive this morning and that was really good. It's a shame there that in the last run in Q3 there was not more time!"