The new four-and-a-half year contract will keep the 24-year-old at Villa Park until the summer of 2015.
The England international made his return from a calf problem in the midweek clash with Blackpool.
“I’m pleased he’s signed this contract,” Houllier said. “I just want to make sure that he keeps growing.
“I know his record. He’s a local boy, it’s good to keep the roots sometimes and the target is to make him a regular player for the national team.”