Steer has signed a contract extension that will see him remain at the club until 2023.
He said, "I've been here since 2013 and staying here is something I've always wanted to do. I'm really happy.
"Last season was brilliant – the lead up to the Play-Off Final was fantastic.
"To get promoted and then sign a new deal was the target and I'm thankful to have been able to do it.
"When I got told last August I could go out on loan I thought that was my Villa career probably over.
"To be sitting here now and about to embark on the Premier League with Aston Villa is something I couldn't have imagined. I'm over the moon."