The Irish defender has made three appearances for the club since being promoted to the first-team last month.
Toner, 19, was called up to Villa’s senior squad for the first time last month after impressing with the Under-21s and went on to make his Premier League debut as a half-time substitute for Micah Richards in the 4-2 home defeat to Southampton.
The Irish centre-back has since started the last two games against Watford and Newcastle United, and having impressed on both occasions, he is now expected to be rewarded for his form with a bumper new deal.
The Birmingham Mail’s report claims that the club have drawn up an offer with fresh terms, and if all goes according to plan, the Republic of Ireland Under-19 international should put pen to paper within the coming weeks.
News of a potential new contract for Toner comes just a few months after his future at Villa looked to be in doubt under former manager Remi Garde.
The left-footed stopper, who arrived from Irish outfit Home Farm in 2012, was the claret and blues’ sixth-choice centre-back after returning from a six-game loan spell at Kidderminster Harriers and did not appear to be close to a first-team call-up.
Despite impressing with the Under-21s during the last two seasons, there was even some doubt over whether the club would take up the 12-month option written into the Irishman's current deal, with the Birmingham Mail suggesting that both Bohemians and Shamrock Rovers were interested in bringing him back to his homeland.
Instead, with Villa playing Championship football next term, he could now be set to play a key role in their bid to win promotion back to the top-flight at the first time of asking.