The England starlet, 20, is seen as the ideal candidate to fill the right back spot at Villa Park with centre back Carlos Cuellar currently playing in the role.
He would cost Villa around £7m and would become the their second signing of the January transfer window following the arrival of Emile Heskey from Wigan.
Richards, who was born in Birmingham, will be known by most fans as the man who effectively knocked the Claret and Blue out of the F.A. Cup in the 2005/06 season.
The powerful defender scored a 94th minute leveller in front of the television cameras at Villa Park to earn City a replay on their own turf.
The blue moon boys eventually won through with a fairly comfortable 2-1 win at Eastlands.
Richards may have been the bane of Villa on that occasion, but on the first day of this season he was not as heroic as Gabby Agbonlahor exposed him to score a hat-trick at Villa Park.
The Man City man has struggled to show the form that earned him numerous England appearances under Steve McClaren and a move to Villa could be just what he needs.
But, with the City revolution in full swing, Richards may decide that he wants to be part of a side with title ambitions next season.
That said, Villa might just share those ambitions, taking into account their performance during this campaign.