The Canaries refused Villa permission to speak to the Scot, prompting Lambert to walk away.
The door is now open for him to go to Villa after American owner Randy Lerner headhunted him.
Lambert's decision to resign is a bitter end to his relationship with Norwich, whom he led to 12th in the Premiership from League One.
However, his progress through the ranks in management has been noticed, with the manner in which he has gone about his business at Norwich, Wycombe and Colchester.
It is no surprise that other offers have come in for him after a fantastic season in the Premiership.
Elsewhere, Brendan Rodgers is now poised to take over the reins at Anfield.
The 39-year-old, who has been praised for keeping Swansea City in the Premier League, has told Swans chairman Huw Jenkins of his intention to take the post.
"Following on from discussions with Liverpool's owners, Brendan has informed us that he would like to take up their offer to manage Liverpool," said Jenkins.
"At the moment we are currently in talks with the owners to agree compensation."
Former Celtic target Roberto Martinez, linked with both the Liverpool and Aston Villa job, has pledged his future to Wigan.
Finally, West Brom have held talks with former Schalke and Stuttgart boss Ralf Rangnick to be Roy Hodgson's successor.