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Villa are 40/1 with Paddy Power to lift the Capital One Cup in 2014/15
His efforts were not enough to prevent relegation last term, though, and he is the latest in an increasingly long line of players to leave Craven Cottage, with the likes of Brede Hangeland, Damien Duff and Steve Sidwell already moved on.
Richardson joins Philippe Senderos and Joe Cole in moving to Villa Park as Paul Lambert looks to improve on last season's 15th-place finish in the top flight.
"Kieran will complement many of the players here well with what he brings," said Lambert.
"He will add pace, a great deal of experience and he knows the Premier League. He's played a lot of games for a lad who has yet to turn 30.
"The grounding he gained at Manchester United has stood him in good stead and he knows what it is to compete in this league and to win things and that's important. I'm delighted he's joined us and we're really looking forward to working with him."
Richardson has made over 200 Premier League appearanced during spells with Manchester United, West Brom and Sunderland.