"Martin's achievements have been superb," said Lerner. "We have improved steadily and we have qualified for Europe two seasons in a row.
"He has bought into our club, he has emotionally invested. That's how he's wired.
"He has a reputation as a very good manager, with good success, and that will play a part when new players are thinking of coming to Aston Villa.
"The funds will be in place for him."