The Rangers boss is believed to have met with Christian Purslow, the Villa chief executive, on Wednesday to discuss the prospect of taking his first managerial job in the English Premier League.
It comes after the Ibrox club granted permission for Gerrard to open talks with the West Midlands club, according to The Telegraph, with the 41-year-old said to be on the verge of taking the job.
Rangers are also expected to receive around £3million in compensation should the deal be finalised.
Villa sacked Dean Smith on Sunday after three successful years at the club ended with a run of five straight defeats that has left them 16th in the table having played 11 games.
Gerrard topped the shortlist of replacements after leading Rangers to their first Scottish Premiership title in 10 years in an impressive unbeaten campaign last season on the back of two successive runs to the Europa League last 16.
He has a previous relationship with the current Villa CEO from their time together at Liverpool, where Purslow served as managing director between June 2009 and October 2010, while Gerrard was club captain.
Villa hope to have their man in place by the end of the week to provide some preparation time ahead of their first fixture after the international break at home to Brighton, which would also allow Rangers to address the void ahead of their League Cup semi-final meeting with Hibs at Hampden Park on November 21.
Reports in the West Midlands claim the deal is "all but done" with Gerrard finalising his backroom staff, which could include his current Rangers assistant Gary McAllister and first-team coach Michael Beale, as well as set-piece specialist Tom Culshaw and head of performance Jordan Milsom.
The intense speculation over Gerrard’s future has led to bookmakers opening markets on potential candidates to take over at Rangers if, as now seems likely, the manager departs.
Former Norwich City manager Alex Neil and ex-Ibrox midfielder Giovanni van Bronckhorst, both currently without clubs, have both been backed in to short odds.
Other names including John Terry, Frank Lampard and Dean Smith have drifted in the markets but former Aberdeen boss Derek McInnes is also considered a frontrunner.