The Denmark international will formally put pen to paper on a deal which will keep him at Villa Park until the end of the 2009-10 season on Friday.

Thirty-year-old Laursen was out of contract in the summer but has consistently stated that he was happy to remain at Villa.

Villa boss Martin O'Neill said: "Everyone at Aston Villa is absolutely delighted that Martin is staying on for another two and a half years.

"He has become a firm favourite with the fans and I would think they are as pleased as we are that he is staying.

"Martin has been playing some wonderful football and he deserves everything he gets.

"He has shown great determination and the way he has overcome a serious injury is a lesson to everyone.

"He has removed the doubts over his fitness by playing regularly this season. I am delighted, and so is everyone at the club, that he is staying."