Luiz’s deal at Villa Park runs out next summer and the midfielder has seemed resistant to signing a new contract with the Villans.
Amidst the uncertainty, the midfielder has come to the attention of a number of clubs, with the Villans having refused an offer for him.
Arsenal are particularly keen on him after seemingly missing out on Bruno Guimaraes and it has been speculated they could make a bid.
However, with the midfielder now highly in demand, the Villans are planning to open new contract talks with Luiz.
The midfielder has earned the admiration of both the Villa faithful and manager Steven Gerrard and they wish to keep him at Villa Park for the foreseeable future.
Luiz has 17 appearances for the Lions in the Premier League this term and has recorded three assists in the process.
If Luiz does not sign a new contract at Aston Villa then the club could be forced to look to sell him in the summer.