If all goes to plan, the 63 year-old Frenchman is set to be at the helm for the first time for the home Carling Cup game with Blackburn on September 22.
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He will return to England for the home match with Bolton on September 18 but Kevin MacDonald will remain as caretaker boss for the next few days.
Houllier said: "I take great pride in my appointment as manager of Aston Villa. It is a great honour for me.
"Why am I here? One of the reasons is that I think Randy Lerner [owner] and Paul Faulkner [chief executive] have great enthusiasm, dynamism and honesty and they convinced me of their ambitions for the club.
"I had a good job with the FFF but I had a desire to return to English football - although it is not a case of unfinished business because I did well at Liverpool and won six trophies."
Houllier confirmed that MacDonald will not be part of Villa's first-team set-up.
He said: "I spoke to Kevin this morning and he prefers to go back to his role as reserve-team manager.
"He has done a very good job and I trust him and I am sure our relationship will be good."