Sherwood spent six months in charge at the London club following Andre Villas-Boas' departure in 2013 and will make his return needing points to keep Villa's Premier League survival bid on track.
Having taken over at Villa Park in February, Sherwood says he is relishing the challenge of keeping the club in the top flight.
"I was pleased with what I did [at Spurs], but I respect the decision made by Daniel Levy and his board, they've been good for me," he said.
"They only made that decision based on what they believe is best for the football club.
"They have to make that decision. I haven't got to agree with it. I just move on.
"I thank them for not being there now as it is the reason I am at this fantastic football club."
Villa are three points clear of the relegation zone with six league games to play, while they also face Liverpool in the FA Cup semi-finals on Sunday April 19.
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