Friedel became the oldest player to represent Villa - just three months short of his 40th birthday - in Tuesday's clash with Manchester United at Old Trafford.
The American, whose current deal expires this summer, made several fine saves despite Villa losing 3-1 to the Red Devils.
Boss Gerard Houllier plans to hold talks with Friedel over his future at the end of this month but Downing is convinced he still has a role to play at Villa Park.
The England winger said: "I don't know the situation regarding Brad's contract. Maybe his agent might get him another year and he has not mentioned anything to the lads. But I am sure if he keeps playing the way he has been, then someone will definitely sign him up - and hopefully that will be us."
Downing added: "We found out before the United game that he had become Villa's oldest player and I'm sure he'll get a bit of stick from the lads now. But for him it is great and brilliant that he is still playing games at his age and playing so well."
Source: PA
Source: PA