The 23-year old USA international spent the second half of last season on loan at Villa Park but could now join the Birmingham club in the very near future.
"Yes, the two clubs are in agreement," said Monchengladbach sporting director Max Eberl on the club's official website. "We have reached an agreement on a transfer fee, it will be significantly higher than the sum Borussia paid in 2007 for Michael Bradley.
"It now will be only a short while [before the deal is completed], because Aston Villa just unveiled their new coach last weekend. And he plans to speak with Michael before contracts are signed."