The 22-year-old striker’s previous deal had been due to expire at the end of the current season and the club have moved to secure his long-term future.
Davis is yet to score a Premier League goal for but is highly-rated by Dean Smith and his coaching staff. The former Biggleswade Town player is currently Villa’s second-choice centre-forward, behind club record signing Ollie Watkins.
Davis is the third player in a week to sign a deal at Villa after Jack Grealish and Tyrone Mings. The club are also keen to tie down midfield duo of Douglas Luiz and John McGinn in the near future.
Just how big a part Davis will play in the current season may depend on Villa’s business over the rest of a window in which their spending has already topped £75million.
Smith is keen to add another striker before next month’s deadline and if successful, Davis may be allowed to leave on loan, with a host of Championship clubs interested.