The 21-year old midfielder has penned a two-year deal which will keep him at Villa Park until the summer of 2016.
The West Midlands native has been with Villa since arriving at the youth academy in 2005 before joining the senior ranks in 2011.
A knee injury restricted Gardner's Premier League appearances to nil last season, which included a loan spell with Sheffield Wednesday, and he was delighted to have been tied down to a new deal as Villa look to the future.
"For me, it shows how much the club cares about me and sees me as a central player in the future," Gardner told the club's official website.
"The manager and other people at the club believe in me and know what I'm capable of. I want to be a big player for the team next season and I'm going to work as hard as I possibly can to demonstrate the potential they see in me.
"Obviously, it's been a frustrating two or so years for me. I injured my knee, the ACL (anterior cruciate ligament), and I tried to get back too quick, which actually set me back a few months.
"I'm still young but I want to establish myself and show everybody what I can do.
"With the England U21s, I've experienced international football and it's three years ago now since I made my Villa debut, so it's up to me now to work my way into the team again and stay there."
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