Ilori is yet to make a senior appearance for Liverpool since his £7million move from Sporting Lisbon two years ago.
He has previously spent time on loan at Granada and Bordeaux but could now get a season of Premier League football under his belt for Villa.
Ilori rejected the chance to join Sunderland on loan earlier in the day, according to the Liverpool Echo, and must now decide whether he wants to spend the rest of the season at Villa Park.
Jose Enrique is also closing on a move away from Anfield, to West Brom, but Joao Carlos Teixeira looks likely to stay for now despite being linked with a loan move.
Villa, meanwhile, are said to have had an offer rejected for Crystal Palace striker Dwight Gayle but appear to be closing on the signing of West Brom defender Joleon Lescott.