Sky Sports are reporting that a loan fee and other terms were agreed between the two clubs on Tuesday.
A host of Championship clubs were interested in signing Hourihane this month.
Bournemouth – who are four points behind second-placed Swansea in the table – were interested in him, and even made a proposal to sign him permanently at the end of the season.
However, the Republic of Ireland international has opted to move to Swansea instead.
This is how Villa and Swansea fans have reacted on Twitter after the news broke out.
Set pieces strong? We’ve lacked since selling Sigurdsson.
— Liam (@LiamDonnachie) January 19, 2021
Fantastic servant to the club who's been part of many of the key moments of the past few years. We better have a replacement or 2 over the line!!!
— Paul Wright (@LeanLeft_Wright) January 19, 2021
Great player for us but not getting the play time. Good luck and seeing as it’s only a loan we may well see you again soon in a Villa shirt.
— Nikhm #WearAMask (@Nikhm3) January 19, 2021
Yeah buzzing with that mate. Lovely left peg on him. You reckon he’ll slot into midfield 3 and can he sit just infront as a 10?
— The Jan (@SteffanDavies95) January 19, 2021
Not the end for @ConorHourihane at Villa. So often fought his way back into the team. I think this is him pushing to go, to play. If he does what he can at Swansea I can see him forcing his way back in to the Villa team. He’s too good for the Championship, lucky Swansea.
— Xavier (@ZapBranny) January 19, 2021
It good move for him. Swansea always good football team play good football.
— Mike (@MikeVilla1985) January 19, 2021
Hourihane, who has not made an appearance for Villa since the end of November, has dropped down the pecking order at the club following the arrivals of Ollie Watkins, Ross Barkley and Bertrand Traore.
The 29-year-old has just made five appearances in all competitions this season, and it seems a move away from Villa Park on a short-term deal is the best option for him this season.
Swansea are currently second in the Championship and they expect to complete the loan signing of Jordan Morris, the USA international, later this week.
Villa are also looking to use this opportunity to find a replacement for Hourihane and they are in talks to sign Marseille midfielder Morgan Sanson.