Terry left Chelsea at the end of last season and signed a one-year deal at Villa earlier in July.
Steve Bruce's side finished 13th in the Championship last season and Terry will secure a £2million bonus if he helps the club return to the top flight after two seasons away.
The 36-year-old was first handed the armband at former club Chelsea in 2001 and was made permanent captain at Stamford Bridge ahead of the 2004/05 season.
During his time as skipper, Chelsea won multiple trophies including the Champions League and five Premier League titles.
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