Herd, 25, has not featured for Paul Lambert's Premier League team in any competition this season and, with his contract set to expire at the end of the campaign, is not expected to remain at Villa Park.
Able to play in defence and midfield but cursed by injuries in recent years, Herd was a surprise inclusion in Australia's Asian Cup squad but an Achilles injury forced him to return to England after the Socceroos' 4-1 opening victory over Kuwait and without featuring at the tournament.
After a brief loan spell at Bolton Wanderers earlier this season - where he made two Championship and one League Cup appearance - the Melbourne-born utility player will be back in England's second tier, aiming to earn regular minutes at Malky Mackay's side.
The Latics are second from bottom on the table, five points from safety and having played one match more than the two teams directly above them.
"I'm delighted that Chris has been able to join us on loan until the end of the season, he's a player I've looked at a lot over a period of time," coach Malky Mackay said in a statement.
"I feel that his energy, his athleticism and his tenacity will be things that can really help us out.
"He's got Premier League and Football League experience and he's another young player who wants to kick on at our club and solidify a position here, so I'm delighted we've managed to get him."