The new three-and-a-half-year contract will keep the 21-year-old at Aston Villa until the summer of 2014.
Herd said: “When I got offered the contract, it wasn’t a difficult decision to make at all.
“A few of the other boys have done really well and have all signed contracts so it is nice to follow in their footsteps.
“When you get that taste (of the first team) you want more and it spurs you on.”
Herd made his Premier League debut against Manchester United earlier this season.
