The 21-year-old Austrian was delighted the negotiations ended successfully.
"I'm really happy that I've signed. I love the club and it's been brilliant for me, for I have a feeling of being at home here at Aston Villa," he told the club's official website.
"I've been here for six seasons now, having started with the Academy in 2006, and last season was tremendous for me and terrific for the team the way we played over the second half of a really demanding campaign.
"I feel like I owe the manager and the club because the manager backed me last season after he came in and I have always felt comfortable and really supported the club."