"The board of Aston Villa is delighted with John Terry's contribution to our club in his first year as an assistant head coach," club CEO Christian Purslow said in a statement.
"We admire his dedication and commitment to gaining more experience and learning under Dean Smith's leadership in these formative years of his managerial career."
Aston Villa, who returned to the Premier League after suffering relegation in 2016, begin their season with a trip to Tottenham Hotspur on Aug. 10.
(Reporting by Rohith Nair in Bengaluru; Editing by Christian Radnedge)