Former Norwich boss Lambert has been rewarded for Villa's strong start to the campaign - they are second in the top flight - but the move signals a change in Lerner's stance.

The Scot, who has been in charge for over two years, has signed on until 2018 after his current deal was set to expire in the summer.

"We have a long-term vision for Villa and Paul is completely integrated into our plan to manage the club carefully and ambitiously back to a position in the Barclays Premier League appropriate to our history and collective expectations," said chief executive Tom Fox.

"I knew the first two years would be tough but we've made progress and now we're beginning to see the benefits of all of that hard work," added Lambert, who has often had to fend off criticism of his side in his two previous seasons.

"We're in a much healthier position on and off the pitch and, with a continued sensible approach, we believe we're on the right road to build upon the strong start we've made this season in the Barclays Premier League.

"The bar had to be raised, everyone has stepped up and there will be continued improvement.

"We can look to the future with real optimism and a determination to make this season successful, and the seasons that follow.

"On a personal note I'd like to express my thanks to the chairman for his continued support and to the fans who have been really supportive towards myself, the staff and, most importantly, the team."