But the main factor in James opting to pledge his long-term future is that he now feels he can achieve his ambitions in the game with Villa.

The deal ends a topsy-turvy sequence of events for James, who went on and came off the transfer list in the space of 96 hours last month.

He asked for a move on the Thursday before the game with Manchester City - a move described as "a kick in the teeth" by Villa manager John Gregory - and then withdrew it the following Monday.

James was angry that his request was leaked 24 hours prior to the clash with City and felt he was being used as a pawn in the power struggle between Gregory and chairman Doug Ellis.

He initially said he would not be signing a new contract for "the foreseeable future" but is now ready to put pen to paper.

James' agent Colin Gordon said: "We shook hands on the deal last night. There are a few more technicalities to be tied up but nothing that will stop it going through.

"He will be on a parity financially with other senior players at the club but the main thing is that David now feels very positive about the way things are going at Aston Villa.

"He has been very impressed with Juan Pablo Angel since he arrived and feels he can achieve the things he wants to in the game with Villa."

James has been in outstanding form since he joined Villa from Liverpool for the start of the 1999-2000 season.

He won back his place in the England squad last season and although missing out on Euro 2000 he won his first cap for three-and-half years in the November international with Italy in Turin.