Holt worked under Villa boss Paul Lambert during their time at Norwich and the two will rekindle their working relationship as the Scotsman looks for a goal boost to fire his faltering team.
Villa have scored just four goals in their last seven Premier League matches and although Holt himself has only netted twice in 21 games for Wigan this campaign, Lambert is hoping he can provide the side with a boost.
Wigan manager Uwe Rosler has confirmed the deal and revealed the player moves with his blessing.
"There is a great opportunity for him to work under his previous manager, who got the best out of him. Both parties had worked well together," Rosler told Sky Sports News Radio.
"It was too good a chance for Grant to turn down, we wish him all the best but he is our player and we will see where we are over the summer."
Speaking after Villa's 2-1 home defeat to Arsenal on Monday Night Football, Lambert praised Holt's qualities.
"I know Grant from my Norwich days, he was absolutely brilliant for us. It's a couple of years later down the line, so we'll see," he told Sky Sports.
Quizzed on if it is experience he is looking to sign, Lambert replied: "There is that, plus he's a proper man."
Holt was part of Lambert's squad at Carrow Road which won promotion to the Premier League and he scored 15 top-flight goals during the 2011/12 season.
Lambert has either pulled a master stroke or cost himself his own job! I personally believe Holt has what it takes at Premiership level but he's had a poor season in the Championship! He allegedly moved back up north for his family but it's obviously clear now that he was just at odds with Hughton! Does it reek of desperation on Lamberts part or is it an estute gamble based on a fantastic working relationship of faith and trust..?! If Hoolahan follows Holt and the canary influx to Villa Park then I would genuinely be fearful of Villa in the relegation scrap as little Wes holds the key to unlocking the tightest of defences and is extraordinarily overlooked by a one dimensionally obtuse Hughton who favours average centrebacks over the intricacy of Hoolahan and his La Liga brain! Holt or Van Wolfswinkel had been a strange debate this season at Carrow Road, one that seemed a formality until the season actually started! Holt is many things (and isn't a lot of other things) but one thing almost everyone agrees on is that he gives 110% every time he crosses the white line. He should always be remembered fondly at Norwich, as I believe Lambert should regardless of his acrimonious departure, but modern football is too fast paced for sentiment and old Holty may find himself off that yellow and green pedestal if he scores the goals that ultimately send Norwich down in a season they would only have themselves to blame!- 4eadie