The Australia Under-20 international is set to put pen to paper on a deal which will keep him at Villa until the summer of 2015. Herd had 18 months remaining of his current deal but has earned his new contract after impressing manager Alex McLeish since breaking into the first team.
The 22-year-old made his debut against Manchester United last season, and this season has operated at right-back and latterly in central midfield.
"Chris is in the team because he has deserved a chance. He has been a good anchor man in the team. He keeps the game simple," said McLeish. "He's shown that you can force your way in, and I want other players who are willing to kick the door down and make me pick them.
"That was the message I gave to all of them at the start of the season, and that is what Chris has done. He's a whole-hearted boy. He has fantastic application. He trains like a beast every day and is a good role model to any player in terms of his attitude.
"He is improving all the time, and that's partly because he's getting first team football."