The defensive utility, who can play at the back and in midfield, had been with Villa for the past three years after arriving from Wolves.
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Dendoncker has signed a two-year deal with Oviedo to 2027.
For the past two seasons, Dendoncker has spent time on-loan with Napoli and Anderlecht.
Oviedo opened their season last weekend with defeat at Villarreal.
