The 38-year-old has joined from Anderlecht and replaces the departed John Terry on Dean Smith’s backroom staff.
Birmingham-born Danks spent more than a decade coaching in Albion’s academy before leaving in 2016 to join the FA.
There he held a number of key roles, including lead offensive specialist coach. He was also part of the staff which helped England’s under-20s win the World Cup in 2017.
Danks was appointed Vincent Kompany’s assistant at Anderlecht earlier in the summer but has left after just three months to join Villa.
His arrival completes a shake-up of Smith’s backroom team which began with Terry’s departure in July and was followed by Richard O’Kelly stepping down last month.
Austin MacPhee was appointed specialist set-piece coach before the season, with Danks now completing the staff.
Smith had been keen to appoint a younger coach with a background in data and analytics. Danks’ expertise as an attacking coach was also seen as a key attribute.