While there’s no buy option in the current deal, both clubs are expected to revisit talks in June.
The Spaniard joined Villa in a late transfer window move, shortly after Marcus Rashford completed his loan from Manchester United.
Asensio has already made an impact at Villa Park, and his form could determine whether he stays in the Premier League.
Speaking after an FA Cup win over Tottenham, manager Emery said: “We watched their skill and how they helped us and will help us again in the next months in the different competitions we will face.
"We have to protect every player and try to adapt them into our structure and use their skills. Asensio, Rashford and (Donyell) Malen are versatile players in the attacking third. We can feel confident to have them.”