Westwood has established himself as a key member of Paul Lambert's side since arriving from Crewe last summer.
The 23-year-old was a stand-out performer for Villa despite their struggles at the wrong end of the table and he is tipped for a big future.
Westwood made 31 appearances in all competitions for Villa last season and Lambert is a huge admirer of the player.
Villa are keen to reward Westwood with a new improved contract to ward off potential suitors in the classy midfielder.
Lambert has already tied down the likes of Andreas Weimann, Nathan Baker and Brad Guzan to new deals and Westwood is expected to follow suit later this week.