Davies was signed by Sven-Goran Eriksson and has impressed during his initial one-month loan, making four appearances for the Foxes.
"I am really enjoying my football at Leicester City and it is great to be playing regularly again," Davies told the club's official website. "I am very grateful to Aston Villa for allowing me to extend my deal, and I look forward to playing a key role in our attempts to move up the npower Championship table."
Source: PA
Source: PA