The 24-year-old has been linked with a move to Manchester United all summer but has put to bed any doubts over his future by the signing of this new deal.
Grealish has been with Aston Villa since the age of six and made his Premier League debut for the club towards the end of the 2013/2014 season.
Grealish was instrumental in Villa gaining promotion to the Premier League after three in the Championship last year and he scored eight times to help Dean Smith’s men maintain their top flight status for another campaign.
In a statement to the club's official website, Grealish said: "I am delighted to make this commitment to Villa. It is my club, my home and I am very happy here.
"The owners have made it very clear to me how ambitious they are and how they want to build Aston Villa. There are exciting times ahead and I am very glad to be part of it."
Grealish won his first cap for the England national team in last week’s Nations League game against Denmark.
CEO Christian Purslow added: "Jack is an emblem of our owner’s vision for Aston Villa. He joined our club as a local boy aged six and has developed into one of the country’s finest players finally becoming a full England international last week.
"We are determined to build a top team around him and are delighted that he is extending his contract and committing himself to the club he loves."
Aston Villa’s Premier League campaign gets underway against Sheffield United on Monday.
