The 55-year-old, who left Hull City in July, was named as Roberto Di Matteo’s successor on Wednesday afternoon and is the club’s SIXTH boss in the space of 12 months.
Villa were relegated from the Premier League last season and spent £55million on nine new players in the summer in a bid to seal an immediate return to the top-flight.
But the new-look side has struggled to adapt and currently lie in 19th place in the Championship.
Bruce is now tasked with turning around their fortunes, and Villa Park hero Gray believes they couldn’t have picked a better man for the job.
“I think he’s a fantastic signing for Villa,” the former striker told Alan Brazil Sports Breakfast, shortly before Bruce’s appointment was confirmed.
“You can never be totally sure someone’s going to succeed. I honestly thought Di Matteo was a good appointment alongside Steve Clarke and Kevin Bond, who have good experience and know the league, but it didn’t work.
“But if you’re asking me if I would like Steve Bruce there? 100 percent.
“I know Steve well and I think it would be a fantastic job for him and think he’ll make a real success of it.
“I’m delighted the Villa fans have accepted him. Forget he was at Birmingham city over a decade ago, it doesn’t matter. Has he got the credentials, has he got the drive? Absolutely yes.
“It’s not too late for Villa, not this season. You know the Championship – if you get four wins from five and you’re in the top eight all of a sudden.
“If Steve goes in he will be very quick to asses that. They’ve got two big games coming up, two local derbies against Wolves and Birmingham City, and if Villa get two positive results it will flip their season on its head.
“There’s still an opportunity for Villa to get into the top six, and if they do that then who would bet against Brucey taking them to another promotion via the play-offs?”