The new deal will keep the 20-year-old at Villa Park until the summer of 2014.
Baker told the club’s official website: “I am over the moon. I only had a year left so to extend my association with Villa is fantastic. I am really happy.
“I managed to get first-team experience under my belt in the season just gone and I plan on working hard in pre-season when it comes around and improving next term.
“This is the club for me.”
