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Published 12:29 7 Oct 2018 BST
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Henry, who is currently assistant manager to Belgium manager Roberto Martinez, was close to taking over as manager of Ligue 1 club Bordeaux prior to the start of the season, before deciding against the move.
Terry meanwhile was close to a move to Russian top flight side Spartak Moscow, before citing family as one of the reasons behind his decision to turn down the move.
According to reports, both men interviewed for the role, with the Villa hierarchy deciding that Henry's experience was enough to warrant his appointment as manager.
The likely appointment brings an end to months of speculation linking Henry with the Aston Villa job, with previous reports suggesting that a verbal agreement had been made before the board chose to stick with Bruce.
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