The 26-year-old has two-and-a-half years left on his current deal after joining from Middlesbrough in 2009.
But Downing has reportedly been attracting interest from rival Premier League clubs, including Liverpool and Sunderland.
However, Villa boss Gerard Houllier is happy with how he has performed since he arrived at the club and is ready to sit down with him in the summer.
"His contract is long enough not to worry about that - there's no problem there," said Houllier. "At the end of the season we will see.
"He's improved a lot. He never misses training, he works hard with application, commitment and dedication.
"He is really focussed. He's a major part of our set-up here and I think he can play in several positions.
"He played wide, he also played in the middle and I'm happy with him."
