Lambert still has 18 months to run on his existing deal.
The Telegraph says Villa have initiated talks with Lambert over an extension to his present contract and the club are confident of reaching an agreement before the end of this season.
Tentative discussions were held with Paul Faulkner, the chief executive, in January and while Villa are relaxed about the situation it is understood that Lambert is prepared to sign a new contract in the next few months. It is likely to be another three-year deal with improved terms.
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