The striker has signed a new four-year deal after withdrawing his previously submitted transfer request, ending Tottenham's hopes of luring the 22-year-old to White Hart Lane
The 22-year-old signalled his intentions to leave and move to fresh pastures last Tuesday just ten months into his initial four-year contract, yet has added a further year to a deal.
It emerged on Tuesday that Tottenham were struggling to agree a deal with Villa over Benteke, and will now have to focus their intentions elsewhere - with the striker aiming to repay the faith his current team-mates and the club's supporters have in him.
"I spoke with the manager when I returned to training and we had a good talk," he told the club's official website.
"I am very happy to be back here in Birmingham and at Aston Villa, and to sign a new contract. This is a great club and it has given me a lot.
"Now I have to give back to my team-mates and the fans who have always been right behind me. The end of last season was very good and the lads were very strong.
"It was not easy but we came through it and the confidence is high. So everyone knows what we have to do now - be better. I need to be better than last year."
Manager Paul Lambert expressed his delight at the decision and believes Benteke, whose 19 league goals proved vital in the club's fight to escape the relegation places last season, can grow even stronger.
"I had a full and frank discussion with Christian Benteke on his return to training this week regarding his future," Lambert told the club's official website.
"It is my opinion that the best thing for Christian is to remain at Aston Villa. He enjoyed a terrific first season at the club and can use that as a platform to hopefully enjoy more success this season.
"I'm delighted. Having time to re-evaluate his future, Christian has decided to commit to the club. It's a huge bonus and I'm sure the supporters are every bit as delighted as me to have him on board and raring to go."