The 17-year-old has won a regular place in the Villa side and made his debut for the England under-21 side in last week's game against the Czech Republic.

Villa manager John Gregory has admitted he thought Barry was "rubbish" after watching him for the first time in a reserve match nine months ago.

But he was given his chance when David Unsworth left for Everton and the new deal will provide Barry with a basic £2,500 a week salary, plus a further £7,500 for every game he plays.

"All things being equal, Gareth is guaranteed a massive future in the game. I have seen some kids put on a pedestal at 17 and by 19 they have disappeared off the face of the earth," said Gregory.

"But he is different in being more of a down to earth kid, is a quick learner and his progress this season has been tremendous."

Talks about the contract are ongoing, but Barry hopes to put pen to paper before Christmas.

"Things have gone great so far, but it is still all a learning process for me and I am not getting carried away," he said.

Villa have, meanwhile, named striker Stan Collymore as their new penalty-taker after missing four of the six spot-kicks awarded to them this season.