Villa have won their last six league matches in succession to put serious pressure on second placed Derby County.
The claret and blues are just one point behind Gary Rowett’s side now, with their next match coming against Birmingham City.
The second city derby promises to be a test for both sides, but Sherwood feels that Villa are just hitting their stride.
“Villa are on the march. They have the squad, they have the firepower and the manager,” Sherwood said.
“It’s a massive game. Amazingly, I was told by the club that it didn’t matter. That you can rest the players for the Premier League! Fortunately I realised it did matter and we got the win.
“It [the club] is going to be back where it belongs, I’m sure, next season.”
Bruce has faced criticism at times this term, but his side’s performances over January earned him the Manager of the Month award.
Villa will now be looking to make it seven wins in a row, to continue their impressive run of form, but doing so is sure to be a challenge.
Birmingham have shown signs of promise over recent weeks, and are unbeaten in their last four outings in the Championship.