Bree, who is a product of the same Barnsley youth system that gave rise to Premier League pair John Stones and Mason Holgate, has become a regular at Championship level this season after playing 30 times during the previous two seasons in League One.
The right-back has signed a four-and-a-half year contract that will keep him at Villa until 2021.
"It's a massive club and belongs in the Premier League. Pushing for promotion is definitely the first thing I want to help the team to do," he said upon signing.
Bree had started 18 of Barnsley's Championship games this season prior to the move, helping the South Yorkshire club into playoff contention in their first year back in the second tier.
The January signings are not expected to stop at Villa just yet either as Bree's former Barnsley team-mate Conor Hourihane is in the process of completing his own move to the midlands.
Elsewhere, it is believed that an announcement as to the arrival of Icelandic international Birkir Bjarnason is more or less imminent. The midfielder, who scored against both France and Portugal at Euro 2016, is thought to have undergone a medical ahead of a move from Basel.
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