Berger joined Villa in July 2005 on a free transfer from Portsmouth

The 33-year-old Czech international will sign the deal when he returns for pre-season training in July.

He told the club's website: "We have a new owner, a new manager and several new players - so it's an exciting time for the club.

"In my opinion this club will be challenging for a spot in Europe next season. It's really going places."

Berger ended the season in good form as Villa ended the season on a nine-game unbeaten run.

And the former Liverpool and Portsmouth player feels the future is bright for the club.

He added: "The new training ground will be ready for the upcoming campaign.

I'm sure Martin O'Neill will be bringing in some really good players in the summer Patrick Berger

"It is a massive step for this football club.

"The facilities will be up there with the very best in the country, which will be great news for the current players and a superb way of attracting new ones too.

"I'm sure Martin O'Neill will be bringing in some really good players in the summer, so it looks set to be an interesting time."

Berger was loaned out to Stoke in November after a breach of club discipline but forced his way back into manager Martin O'Neill's plans after returning in January.

He earlier said: "I never said his career here was finished. The realisation that playing in front of big crowds may be over has brought out the very best in him.

"The main thing is that he's been fit - or mostly fit - the two games in three days over Easter probably did for him.

"He has done brilliantly - really great. If he can remain fit for a year - and that's the big thing - then I think he'd be able to make the same contribution as he has since January.

"He has given us that bit of composure which was what we needed at that stage because things were getting a bit frantic."