Villa's billionaire Egyptian owner Nassef Sawiris, who also owns around a seven per cent stake in adidas, was key to clinching the major deal.
It has come after players from both men's and women's teams complained about the current Castore's 'wet look' kits.
It was noted that the effect has hampered performances across the season with grumbles beginning as early as last summer.
When players started to sweat, the shirts would cling to the body and look saturated very quickly.
With the new deal coming in, it means that Villa's partnership with Castore will come to an end after the season finishes.
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The German clothing company also provide kit deals for some of the biggest clubs in the world including Manchester United, Bayern Munich and Real Madrid.
According to The Daily Telegraph, the deal with adidas is reported to be a long-term agreement worth 'multi-millions' for the men's, women's and academy teams.
The agreement is yet to be ratified by the Premier League but no problem is expected due to adidas' long history of providing kits for teams in the top-tier.
Villa are not the only club planning to leave Castore with Newcastle announcing their partnership with the British company will come to an end after the summer.
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The Magpies are also switching to adidas for the 2024/25 season.
Villa have worked with several kit manufacturers in recent history, including Nike, Kappa, Under Armour, Macron, Diadora, Reebok, Asics, Umbro and Hummel.
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However, they have never adopted an adidas kit - making this new ground for the club despite Sawiris' involvement.
The 62-year-old was the driving force behind the deal being clinched, as well as new president of business operations Chris Heck.
Villa are keen to continue their momentum on the pitch into their business deals off it as they look to establish themselves as a perennial European outfit.
Unai Emery has been a huge boost to the club, who are currently second in the Premier League and find themselves in an unlikely title chase.
Whether or not they can challenge for the title at the end of the season remains to be seen but they expect now to play in Europe next season - whether that be the Champions League or the Europa League.
They are currently in the last 16 of the Europa Conference League and hope to lift the trophy, following in West Ham's footsteps last season.