The Australian midfielder, described as being ‘worth his weight in gold’ by manager McLeish, will remain at Villa Park until 2015.
The 22 year old said, “I am really happy to have signed a new contract and I’m pleased that I’m going to be here for the next four years. When we came back for pre-season the gaffer said he would give anyone a chance who deserves it and hopefully I can repay him and keep improving.
“Coming through the ranks the fans have been great for me, both home and away – and I really appreciate it.
“Growing up here, coming through the youth team, the reserves and then eventually the first team, they see that and they are happy about that to see youth players coming through.”
Herd began his career as a right back, before being transferred to central midfield.
He shot to prominence in a 2-2 draw with Manchester United, before making sub appearances against Blackburn and Arsenal.