The deal keeps Englishman at Villa Park until 2020, a move that could turn out to be a real coup for Aston Villa manager Steve Bruce.
He made his first senior appearance for Villa against Tottenham back in January and has now made his way to become a regular name on the team sheet.
"It's a great feeling to have signed a new contract," he said, speaking to the club's official website.
"This is another milestone for me this season - I had my first start and my full league debut then an international call-up [England U20s] and this is another one.”
"The hard work continues, now.”
Davis’s second goal in all competitions came against Burton Albion in the 4-0 away win at the end of September.
"I've got to keep working and reach that next milestone."
With two goals already in just eight appearances this season, Davis is definitely a player Villa fans are glad to keep a hold of.