Villa accepted a £20million bid from Liverpool for the former Middlesbrough man last night.
“I can confirm that we have reached an agreement with Liverpool following an improved offer received earlier today and the submission of a formal transfer request by Stewart Downing, and have given them permission to speak with the player,” said Villa’s chief executive Paul Faulkner.
“We believe there are replacements available in the market who can strengthen our squad ahead of the coming season, and we are in discussions as such. We are also working hard to conclude a deal for a goalkeeper who we believe can also strengthen the side.”