The 20-year-old England international was in high demand in the Championship last season but has now joined Sheffield United, a club managed by his former manager Ruben Selles.
Barry was at Villa for two years, joining from Barcelona in 2020. He made his senior debut against Liverpool in the FA Cup and helped the team win the FA Youth Cup.
Speaking about his decision to join Sheffield United, Barry said that Selles' style of play aligns with his own playing philosophy.
"I'm excited to join Sheffield United and start training. I've been working hard at Villa, and I'm looking forward to getting into the rhythm of the new season," Barry said.
Barry's future at Villa had been uncertain this summer, but he has now secured a new challenge in the Championship, where he hopes to regain his form and impress.