Terry has been appointed alongside Smith in the new look Aston Villa line up after the sacking of Steve Bruce.
Smith joins Villa from Brentford after nearly three years in charge.
He is a Villa fan and from the midlands and spent four years in charge of Walsall.
But he might already be worried about Terry’s comments – and could perceive him to be gunning for his job in the long run.
Terry, who played at Villa last year before hanging up his boots this summer, was speaking yesterday before the announcement and admitted he wanted to be a manager.
“I’m ready for the next chapter in my life,” he told Sky Sports News during the British Masters pro-am.
“Let’s see what the future brings. Hopefully it brings half the success I had as a player.
“Frank’s a good friend. I saw him the other night. It’s an ambition of mine [to be a manager], it has been for a long time.
“I have ambitions and aspirations to be a coach, a manager, in the long run.
“But, like I said, it’s about taking time to reflect. That’s the most important thing for me.”
Terry was expected to be appointed as assistant to Thierry Henry, but the Belgium assistant snubbed the job.
Rui Faria also ruled himself out leaving Villa to appoint Smith.
He has been successful at Brentford and had started the season well with them in seventh place while Villa are down in 15th, but only three points back.
Villa expect to mount a promotion challenge with Smith and Terry in place. The club also appointed a new sporting director in Jesus Garcia Pitarch.
“These three appointments represent the start of a new era and direction at Aston Villa and we are delighted to secure their services after an extensive search,” Villa CEO CEO Christian Purslow said.
“Dean has a clear and successful coaching philosophy as well as a real understanding of Aston Villa Football Club. He is also knowledgeable about the Championship.
“The board welcomes him to the club and is looking forward to working with him and his staff.
“John is one of the most decorated players in English football, has an affinity with the club and is ready to make the next step in his career working alongside Dean.
“And Jesus also brings a huge amount of experience in his particular role having worked with some of the biggest clubs in Europe. He will ensure the club has an integrated approach running from the academy through the U23s and into the first-team.”