Hendrie continued by tipping Grealish to return to Villa, despite being booed by the Villa Park crowd in City's recent 2-1 defeat to Unai Emery's side.
"It’s at the stage now where Jack should probably be thinking about leaving the football club," Hendrie said. "Nobody could deny that the move hasn’t been successful, he’s won everything there is to win during his time there, but I think for himself, he needs to find his enjoyment in playing again.
"He’d be an asset for any top football club. I would love him at Villa, but would they have the finances to bring him back? It would probably be a complicated deal to complete.
"I know the Villa fans have given him some stick, but I think they would love to see him back at Villa Park. He wouldn’t be coming for a pay day; he’d be coming to win something with Villa and help take the club up a level.
"It would be brilliant if he came back. I do feel he has to go and leave Man City at the moment to find some enjoyment in his game."