The 37-year-old has hung up his boots and is expected to focus on a career in management. He was the club's most successful captain.
Terry turned down a move to Spartak Moscow last month, despite reportedly having a medical, saying it was not right for his family.
Terry joined Chelsea's academy from West Ham at the age of 14 and made his first-team debut as a substitute in a League Cup victory over Villa in October 1998.
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'Right from the outset they have given me total support, on and off the pitch, and I have a tremendous bond with them.
'To me, you are the best fans in the world.
Brought to Villa by Bruce ahead of the 2017/18 season, it is claimed that the former Chelsea captain would have been somewhat reluctant to step straight into the role Bruce vacated. I hope I have done you all proud wearing the shirt and the armband.
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Best remembered for spending 19 years as a professional with Chelsea, he scooped 17 major honours at Stamford Bridge including five Premier League titles.
'My club career and heart will always belong to Chelsea, but I am grateful for my loan spell at Nottingham Forest in 1999, which was invaluable for my development as a young player.
Terry had captained the club last season, when they reached the play-offs but failed to achieve promotion, and himself interviewed for the job of replacing Bruce. He also picked up Champions League and Europa League winners' medals but did not play in the finals. They all guided me on my way to playing 717 games for the club I love, and it was a privilege to serve them as captain.
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