He has suggested they can manage the demands of both the Premier League and Champions League.
Pardew even thinks they might contend for their first league title in over 44 years.
“I think Liverpool are going to be involved in that conversation and I have a little feeling for Villa if they can just keep the squad in tact,” Pardew told talkSPORT.
“They have definitely got the potential to do a Leicester with that team that he has, particularly the starting XI.
“If they start beating each other a bit more, if Chelsea get involved in that and Newcastle can start nicking points, with Rodri injured City won’t be as secure. I think they (Villa) are a better side this year.
“Newcastle have started better than I expected actually, they have got a great manager, some fantastic players, whether they can keep the momentum going...so far they are going very well.”