Steer, who joined Villa from Norwich in June 2013, has put pen to paper on a fresh deal with the Premier League side which will run to the summer of 2019.
The 23-year-old moved to Huddersfield on an emergency loan in September and has featured five times for the Championship team
He will remain in West Yorkshire until November 11.
''I am delighted to commit my future here at Villa,'' Steer told the club's official website.
"It's a fantastic place to be - but I am also enjoying getting regular football at Huddersfield Town too.
"It's been good for my football education.
"Today's been a good day and I'm focused on pushing forward now."
Source : PA