Douglas Luiz has made 14 appearances for Nottingham Forest this season
The 27-year-old is currently on loan at Nottingham Forest from Juventus, but is set to leave the City Ground before Monday's transfer deadline and join Villa.
The deal includes an option to buy.
Villa sold Luiz to Juventus for £42.5m in June 2024 to help solve their profit and sustainability problems, but he made just three Serie A starts before joining Forest in August 2025.
Villa boss Unai Emery is looking to bolster his midfield options, with captain John McGinn out for up to two months with a knee issue and Boubacar Kamara expected to miss the rest of the season with a knee injury.
Another Villa midfielder, Youri Tielemans, is also set for a period on the sidelines after he came off injured at Newcastle on Sunday.
Emery's side lost out on Conor Gallagher earlier this month after the England international opted to join Tottenham from Atletico Madrid for £35m.
Villa are third in the Premier League - four points behind leaders Arsenal - and have qualified for the Europa League last 16 with one league-phase game to spare.
Villa are also expected to complete the £18m signing of striker Tammy Abraham from Besiktas imminently after the striker had a medical in the UK.
The Turkish side activated an £11.2m option to buy loanee Abraham from Roma on Monday and are now set to sell the 28-year-old to Villa.
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