Young returned to the club last summer for a second spell and will now remain at Villa Park until the end of the 2022/23 campaign.
The 36-year-old has enjoyed a glittering career at the top level of the game, winning silverware both domestically and abroad with Manchester United and Inter Milan.
Young also represented England at a World Cup and European Championship, winning 39 caps for his country. Young rejoined Villa last summer after being released by Inter Milan and though Steven Gerrard was not in charge at the time, the Villa boss remains keen to keep his former England team-mate as part of the squad.
Having secured the signings of Boubacar Kamara, Diego Carlos and Robin Olsen early in the transfer window, Villa’s thoughts have turned to moving on fringe players, with Trezeguet’s anticipated return to Turkish football now sealed, for about £4.5million.
Last month, Matt Targett joined Newcastle for about £16m after a successful loan spell at the club.
Young’s versatility, as well as his experience, are highly valued by Gerrard as he tries to improve the mentality within his squad.
Backed by billionaire owners Nassef Sawiris and Wes Edens, Villa believe they can break into the Premier League’s elite under Gerrard in the medium term. Lastson, he made 25 appearances in claret and blue.