The 20-year-old central defender becomes the latest youngster to commit his future to the club, following in the footsteps of Gary Gardner and Callum Robinson, who both signed new deal earlier this week.
Donacien’s impressive performances in Aston Villa’s U21 side caught the eye of manager Paul Lambert, who named him on the bench for the FA Cup clash against Sheffield United and the Premier League game against Sunderland.
He told the club's website: “I am so happy that the club have given me an opportunity to sign for another two years.
"This is the right club for me to keep on progressing. I had a discussion with the manager at the end of the season and he said that hopefully I'd be looking to progress at the club.
"There are a lot of top players at this club who I am hoping to learn from.
"Hopefully I can get a good pre-season under my belt, get a good run-out and continue my progress."