Amid speculation regarding the Welshman's future at White Hart Lane, the Portuguese manager wants the midfielder to put pen to paper for a new deal to ward off potential suitors
Spurs have placed a 70 million pound pricetag on Bale following enquiries by Manchester United during a season which has seen him named the Professional Footballers' Association Player and Young Player of the Year and Football Writers' Association Player of the Year.
But, with Bale prepared to stay with Spurs if they qualify for the Champions League, Villas-Boas is keen for the Welshman to sign a new deal at White Hart Lane and end rumors linking him with a move away from the capital.
"It would be good for him [to sign a new contract]," Villas-Boas told reporters. "I think he deserves it for the season he's had. Obviously we could put to bed every single speculation that's coming out.
"It would be excellent and I think a reward for what he has achieved this season."
Bale is contracted to Spurs until 2016 and has scored 30 times for club and country this campaign.