The Australia international has established himself as one of the Football League's leading stars with Swindon Town over the past two seasons.
Sherwood coached Luongo during his time as Tottenham’s development director, before the Australian midfielder joined Swindon Town in August 2013 for £400,000, following a successful loan stint.
He has since been in impressive form for the League One promotion pushers, making 96 total appearances, while adding 14 goals and 13 assists, and also broken into the national team setup in the process.
An unused member of Ange Postecoglou’s 2014 World Cup squad, the 12-times capped Socceroo then had a central role in helping the team win the 2015 Asian Cup this winter, scoring in the final and earning the tournament’s MVP award.
Aged 22, Luongo is now said to be keen to get his Premier League dreams back on track and former mentor Sherwood believes he can make the grade.
The Villa boss is close to Swindon chairman Lee Power, having been teammates at Norwich, and their relationship could help the claret and blues in their reported pursuit.
However, one potential hurdle to overcome could be the fact that Tottenham have first option to re-sign Luongo from Swindon for the same £400,000 fee, which the Robins star himself confirmed following Australia’s Asian Cup triumph.
However, the emerging international also added that he doesn’t believe Spurs are interested in bringining him back to White Hart Lane, telling SBS: “They [Tottenham] could buy me for what they sold me for, but obviously I am not in their plans, which is fine.
"With how well it went at the Asian Cup, it’s probably the right time for me to move on - and maybe look for a new challenge.
"If we get promoted then that would be a new challenge but it’s probably leaning towards me moving elsewhere.
"If nothing comes of it, then I’d be happy to stay on at Swindon."