The 26-year-old winger has secured a permanent move from Manchester City after initially arriving on loan.
Sinclair, 26, initially arrived from Manchester City in the January transfer window on a loan deal for the rest of the term, before Villa’s Premier League survival triggered a £2.5 million permanent move.
The winger got off to a hot start to his claret and blue career, netting three goals in four starts and three substitute appearances, but has failed to get back into the starting line-up since being sidelined for the first half of April with a hamstring problem.
He made just an eight-minute cameo in the weekend’s 6-1 thrashing at Southampton and failed to even make the bench the previous game, as Sherwood’s men beat West Ham United 1-0.
However, the Villa boss insists that the former England Under-21 international has an important role to fill in his side going forward, as long as he can remain clear of injuries.
"We are pleased to have Scott. He's obviously a player with great ability,” said Sherwood. "Once we get that breathing space and find different ways to play, there will be a place in the side for Scott.
"When I first came in and we were playing with wide players, he did very well and scored a few goals.
"His season has been interrupted by injuries unfortunately. But he's a great acquisition for this football club.
"We need to make sure we keep him fit for a longer period so he can get into a rhythm and then give him some game time and see what he can do."
Sinclair’s permanent Villa switch also marks the end of a nightmare spell at the Etihad Stadium, which saw the former Chelsea product’s once-blossoming reputation take a considerable hit.
After making a £6.2 million move from Swansea in August 2012, he would go on to make just three starts in three campaigns with the Citizens, while also failing to make an impression during last term’s season-long loan spell at West Bromwich Albion.
Nevertheless, if he can get back to the form he showed before moving to Manchester then his £2.5 million price tag will look like a considerable bargain.