But Houllier will not be able to formally take charge for almost a fortnight until he sorts out the terms of his departure from his role as technical director with the French Football Federation.
The Frenchman will not attend Monday's away game with Stoke and will only oversee the home game with Bolton next weekend before taking charge of the Carling Cup tie with Blackburn if all goes to plan in terms of securing his release from the FFF.
But the 63-year-old says he is hungry for a return to Premier League football six years after ending his successful spell with Liverpool.
Houllier said: "I take great pride in my appointment as manager of Aston Villa. It is a great honour for me.
"I met with Randy Lerner (club owner) and Paul Faulkner (chief executive) and was impressed by their enthusiasm, dynamism and honesty.
"They convinced me of their ambitions for the club, what they want to bring to the fans of the club, and I am now delighted to share their ambitions.
"I had a good job with the French Football Federation but the people here have made me feel I want to be part of this project at Aston Villa.
"Everybody knows my passion for English football and the Premier League, the best in the world, and that has not diminished since my time at Liverpool.
"I had other offers. The offer from Villa came very late but it proved irresistible because it is a club with a fine history and a very good squad. They have a real pedigree and that played a part in my decision."
Houllier won six trophies at Anfield and, although refusing to promise overnight success, feels he can bring more glory to the West Midlands club, who have finished in the top six of the Premier League for the past three years.
He said: "There is a vision for gradual improvement. We won't achieve things overnight but we want silverware. Everyone wants Champions League football or Europe and we are saying one step at a time.
"The owner (Lerner) has set no targets but in three years if we can get into the top four it will be excellent.
"However, I am not looking upon this as unfinished business because I did win trophies in the Premier League before."
Houllier also revealed that caretaker boss Kevin MacDonald has turned down the chance to be part of the first-team coaching set up and will instead return to his role as reserve-team coach.
But the former Liverpool midfielder will continue to be in charge for the Stoke and Bolton games before hopefully handing over the reins to Houllier.
Houllier said: "I spoke to Kevin (yesterday morning). We had a good conversation but he prefers to go back to his role with the reserve team. I am disappointed for him. He would have been helpful to me but I respect his decision and I am sure our relationship will be good."
Houllier also revealed that Patrice Bergues, who worked as part of his back room squad at Liverpool and Lens, would not be moving to Villa in the immediate future because of "personal reasons".
In terms of securing his release from the FFF, Houllier said: "They could make me stay for three months but I am negotiating to leave far earlier.
"I hope to be here to watch the Bolton game and will start for the Blackburn game if all goes well. I have a good relationship with the FFF but I need to go back and sort the final things out."
Houllier said the crop of young English talent at Villa will be given the chance to flourish under his leadership.
He said: "If they are good enough, they will play, but they will also improve if they are focused."
Striker Kenwyne Jones will look to kick-start his Stoke career against Villa after admitting he began to stagnate at Sunderland last season.
The Trinidad and Tobago international has played just 82 minutes for his new side after an ankle injury sustained on his debut at Wolves forced him to miss the home game against Tottenham and curtailed his involvement against Chelsea just before the international break.
However, the subsequent lack of football has allowed the 25-year-old to regain his fitness and he has set his sights on making his home league debut a memorable one on Monday.
"I'm looking forward to doing well. Just playing football week-in, week-out," said Jones.