It had been suggested Villa would be holding back Elliott for the remainder of the season so to avoid him reaching the set number of games that would trigger the obligatory permanent clause.
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Villa manager Unai Emery has already stated publicly that Elliott is not in his long-term plans and would have preferred Liverpool had taken him back during the January market.
However, the Liverpool Echo says Villa and Elliott have some leeway in terms of team selection for the remainder of the campaign.
The clause applies only to Premier League games, with the 22-year-old having featured just four times for Villa in the competition this season.
The permanent option will be triggered if he reaches 10 Premier League appearances this term.