The 20-year-old is heading back to League One after making 37 appearances in the third tier for Shrewsbury Town during the previous campaign.
Feeney, a former England under-16 captain, joined Villa from Fleetwood Town three years ago and has also spent time on loan with Real Union in Spain.
He started 35 matches for Shrewsbury last season but the year was largely an unhappy one, with the team relegated to League Two at the end of the campaign.
Speaking after his switch to Huddersfield was confirmed, Feeney said: “I am thrilled to join Huddersfield Town for the season, a club that has a positive feeling around it and ambition, in Sky Bet League One.
“After conversations with manager, Lee Grant, I felt like this was absolutely the right move for me to continue my development. He has clear values and objectives and that is something that I can really get on board with.
“The objectives are clear, and I can’t wait to contribute to the side this season, hopefully giving the fans some positive memories on the way.”
Feeney signed a new contract at Villa two years ago which is due to run through to 2027.