The Premier League giants confirmed the news on their official website on Thursday.
Young, who is only 18 and is already in the first team picture, hopes to get more senior game time this season.
He was in the squad for the club’s Champions League group stage win over BSC Young Boys.
"We are delighted Kadan has signed a new long-term contract," Villa Academy Manager Mark Harrison stated.
"Over the past couple of seasons, he has trained regularly with the first team and has also been involved in matchday squads. This is a well-deserved recognition for his development, which the first team have endorsed and supported.
"We will look forward to seeing Kadan develop over the coming seasons and hopefully develop into a first-team player for many years to come."