The pair fell out when Savage left Birmingham for Blackburn in 2005.
Bruce, who managed Birmingham for six years until 2007, said on his appointment: “It’s a wonderful opportunity. It is one of the big clubs of this country. To be given the opportunity to manage it is terrific.
“I relish the challenge of trying to take the Club where it wants to go and needs to be – and try to turn around the misfortune we seem to have had over the past few years.
“I am absolutely delighted to have been given the chance. I hope I can do my stuff.”
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
Savage has previously backed Bruce for the job saying his Birmingham connections wouldn't matter.
He said: "Steve Bruce is the perfect man for the job and it wouldn't worry me that he's managed Birmingham.
"He's a great motivator, he's got experience of the Championship and three promotions - two with Hull, one for Birmingham.
"People will say 'Why Steve Bruce? When Alex McLeish crossed the divide but didn't do great at Villa...'
"When I played under him against Villa in the Premier League, we had no right to win those games - they had the better players, the bigger wage bill, bigger crowd.
"But there was something about Steve Bruce when he stood in that changing room. The way he motivated us. They way he gave us the belief. And we battered Villa more times than not when we played against them."