The Midlands rivals meet next week in a game which will be fiercely contested, and Sherwood will not be taking any chances.
The 46-year-old boss says that he will be selecting his best available team, as he looks to secure the local bragging rights for his side.
"You can’t take liberties with this game because I know how important it is to the football club and supporters,” he said.
“We would have liked to have given everyone an opportunity and rotate but you can’t play an unbalanced side like I played against Notts County.
“I certainly won’t be resting players, but whoever is fit prior to that Birmingham game, I will be picking the best team that I think can win the game.
“There won’t be any resting or ‘let’s have a look at this 16-year-old’.
“There’s a time and a place for all of that.”
In the first round Villa named a changed line-up against Notts County, and nearly paid the price as the League Two outfit gave them a huge scare.
Sherwood is not prepared to take any risks this time around, though, and he is right to be wary of Birmingham.
Gary Rowett's side have started the new season in fine form - and have just one defeat to their name after the opening six games in the Championship.
They will travel to Villa Park as the underdogs, but with the Claret and Blues' confidence lacking at the moment, there could be the chance of an upset occurring in the contest.