The right back, 28, currently plays in Spain with Valencia but has been linked with a move to the Midlands for some time.
The former Benfica man was a huge success story as Portugal reached the final of Euro 2004.
He replaced Paulo Ferreira after Portugal lost to Greece in the opening game of the competition and became a mainstay.
Miguel is a player with great attacking instincts and is a converted right winger.
However, he is not without his defensive qualities and this balance makes him one of the most higlhy regarded right-backs in world football.
Miguel has been capped 47 caps for his country, scoring one goal, and is expected to start against Switzerland in Portugal's last group game at Euro 2008.
Villa will have to move quickly if they want to secure his signature as Arsenal and Chelsea are also rumoured to be interested.