Villa, 32, who was unveiled by the Major League Soccer club as its inaugural player on Monday, will play, train and contribute to Melbourne City FC's Hyundai A-League campaign between October and December 2014 prior to the commencement of the MLS season in the United States.
Ferran Soriano, CEO of the City Football Group, said: "We are very proud to have David Villa as part of the City family and are thrilled to announce he will play for Melbourne City FC in the Hyundai A-League this season. The sports fans of Melbourne can look forward to seeing one of the best players in world football representing their city when David brings his rare talents to AAMI Park later this year."
David Gallop, CEO of the FFA, said: "It is exciting news that David Villa will be playing in the Hyundai A-League 2014-15 season. The presence of some of the world's finest footballers in our competition, including a player like David coming straight from the World Cup, is an attractive prospect for spectators that further enhances the value of our game."
Villa, who will play against the Socceroos in Group B at the World Cup, said he was excited about the prospect of playing club football in Australia.
"It's very good for me in every sense," Villa said. "From a football point of view it's the opportunity to play in a new league in a different country, and of course it will be ideal for me to get some competitive football in the period before the MLS season gets under way. I'm sure that playing for Melbourne City FC will be a marvellous experience."
He added: "What I've always done throughout my career is do the best I possibly can. That is what I will do for Melbourne City FC in every game that I play for them. I'll be giving everything for the team, just like I have with every club I've played for."
Head Coach John van't Schip said he was delighted Villa would be joining the Club for part of the 2014-15 campaign.
"David Villa is still at the peak of his game; he is playing his third World Cup in Brazil, has just won the Spanish league and is an instinctive and gifted striker who will contribute significantly to Melbourne City FC," van't Schip said.
"We are confident David will be an incredible asset to the playing group and his experiences in Europe and for his country will help our players not only on the pitch, but in training as well", he added.
For the big stories and the banter follow us on Twitter: @tribalfootball