Laursen has been an influential figure at Villa Park

The 30-year-old former Parma and AC Milan defender has agreed terms and is set to sign the contract on Friday.

After overcoming knee problems, the Dane has been an ever present this term and scored his sixth goal of the season in Saturday's 3-1 win against Reading.

"It is not a secret that I really like it here and have been saying all along that I'd like to stay," Laursen said.

Laursen is looking forward to continuing his career with Villa having settled well in the Birmingham area.

"I feel settled outside the pitch as well. I really enjoy staying here and have a good relationship with the manager and everyone around the club," he said. "I think we have a very good team and I want to play my part in helping Villa progress."

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A firm favourite with the fans, Laursen endured an horrendous time with injury when he first came to Villa from Italy for �3m in April 2004.

But his return to fitness and form has delighted Villa manager Martin O'Neill who told BBC WM: "He's been absolutely outstanding.

"When I first set eyes on him 17 months ago he was recovering from injury and limping around. You had serious doubts about whether he'd be able to play Premier League football.

"Not a bit of it though. He's been magnificent."