“It feels absolutely fantastic,” O’Leary said on BBC Radio Five Live.

“I’m not trying to be arrogant in any way, but I’ve had lots of chances to go back last season, but I’ve been waiting for the right opportunity with the right club and that has come along.

“It’s a club that I want to turn around and make it big again and I’m going to try and do that. I’m so happy.

“You have start putting the club back where it belongs – at the very top, get the crowds in and play good football and I’m looking forward to giving it my best shot.”

O’Leary also revealed he had been in discussions with Villa chairman Doug Ellis and the club’s board over the last few days and would spend tomorrow watching Celtic take on Porto in the UEFA Cup final.

“We’ve been negotiating and talking the last four or five days and I appreciate how quietly Aston Villa conducted themselves,” O’Leary added.

Taylor resigned last Wednesday and Villa have handed 45-year-old O'Leary a chance to kickstart his managerial career.

The speed with which Villa have replaced Taylor will have taken many people by surprise.

O’Leary was one of a number of names who had been linked with the vacant post, the others including George Burley, Alan Curbishley, Micky Adams and David Platt.

But Ellis has moved swiftly to install O’Leary, who becomes Villa’s 10th manager in 20 years.

Villa finished fifth-from-bottom in the Barclaycard Premiership after a disappointing season, with newly-promoted rivals Birmingham finishing above them.

But O’Leary, who spent very heavily during his reign at Leeds, will have to do more wheeling and dealing at Villa under prudent Ellis.

O’Leary splashed out close on £100m (€140m) in the transfer market as Leeds pursued Champions League riches.

He succeeded in steering Leeds to a Champions League semi-final against Valencia two years ago, but failure to qualify for Europe’s top competition for two seasons running then cost him his job.

O’Leary, who eventually agreed a settlement with Leeds, subsequently went public with his hope that he might one day return as Leeds manager.

But he has now grasped the chance to manage a top-flight club which has underachieved in recent years.

Villa fans will be hoping that O’Leary, who successfully brought on young players like Jonathan Woodgate, Alan Smith and Paul Robinson, can do the same with a promising crop of youngsters at Villa Park.

Taylor resigned as Villa boss last Wednesday, claiming that the club needed to move on.

The former England boss took over at Villa Park for a second time in February last year following John Gregory’s departure but the club struggled last season.