The 58-year-old, who announced his impending arrival in a television interview last week, will start work immediately.
Sherwood said: "I'm really pleased to bring Ray on board
He has a fantastic knowledge of the game and I'm looking forward to working with him."
Villa have also confirmed that Kevin MacDonald, who was drafted in as Sherwood's assistant in February, will remain at the club and work to develop home-grown players.
Former England international Wilkins enjoyed a glittering playing career with the likes of Chelsea, Manchester United, AC Milan and Rangers before heading into coaching, and has had two spells at Stamford Bridge as well as a period managing the Jordan national team.
Source : PA
Source: PA