Hendrie, 30 turned down an offer to join Championship rivals Stoke City to sign a three year deal with the Bramall Lane club.
The Birmingham born Midfielder joins the Blades on a free transfer after 13 years of service at Villa Park; he leaves their after playing 244 games (+64) and netting 32 goals during his time.
Whilst with the Villa he helped them win the Coca-Cola League Cup in 1996 although the failed to make an appearance as they thrashed Leeds United 3-0 in the final. However he did play in the FA Cup Final in 2000 when they lost 1-0 to Chelsea - the last final played at the old Wembley.