The Sun says Villa is their No 1 target to play up front alongside Nicolas Anelka next term.
It's reported contact has already been made with the 26-year-old's representative, who confirmed Villa's desire to play in the Premier League.
The Spain international was originally wanted by Jose Mourinho two seasons ago.
Valencia refused to sell then but with the club struggling in 14th position in La Liga, they are now prepared to cash in to rebuild the squad.
Villa has averaged a goal every two games for his club this season despite their faltering form.