Making 200 appearances in all competitions for Burnley, Heaton ended his six-year spell at the Turf Moor after completing his move to Aston Villa on Thursday.
"I am delighted that Tom is joining Aston Villa," Smith told the club's website.
"He's done fantastically well for Burnley over the past few years and his experience and knowledge of the Premier League will be a major asset to us this season."
After successful negotiations with Burnley, Sean Dyche, also added his voice to the completed deal as he thinks it is a better option for his former shot-stopper.
"Quite simply a situation arose this summer, where he is in the final year of his contract, there was contact from Aston Villa and I believe he has been offered a very good contract for him and his family.
"It's a very good fee for a very good player, but who is 33 with 10 months left on a contract, which has to be balanced up.
"For me, more on the personal side, Tom is a fantastic bloke, a fantastic player and my first ever signing at Burnley Football Club."
After Heaton’s deal, he becomes Villa’s 11th signing following the signings of Jota, Wesley, Kortney Hause, Matt Targett, Tyrone Mings, Ezri Konsa, Bjorn Engels, Anwar El Ghazi, Trezeguet and Douglas Luiz, who have all moved to Villa Park.
On the back of a return to the Premier League, Villa have undergone squad overhaul as Marvelous Nakamba will also join as their 12th summer signing from Club Brugge.
