Villa and Derby County were said to be at the front of the queue for Powell’s signature, after announcing their interest in the Wigan Athletic midfielder.
However, Premier League interest is now rising in Powell, with West Bromwich Albion among the interested parties.
Albion, Southampton and Crystal Palace are all chasing Powell - and that means Villa’s transfer plans could have to be scrapped.
If Villa are to lose out to West Brom that will be a bitter pill to swallow, given the rivalry between the two teams.
Villa will also hope that they will be swapping leagues with West Brom at the end of the season.
However, Powell may want another chance in the Premier League, if the opportunity arises this month, after his failed spell at Manchester United as a youngster.
Powell moved to United, after impressing at Crewe Alexander, but he failed to make the grade.
The 24-year-old midfielder has now rebuilt his career at Wigan, and has scored 11 goals in 23 matches at League One level this season, to become one of the most in-demand players in the Football League.