Reports subsequently claimed that Tottenham's first bid was worth £3 million plus young midfielder Josh Onomah, with Villa reportedly keen on receiving above £30m.
Grealish has now committed his future to Villa, ending any lingering doubts at the club that he may leave in January, and CEO Christian Purslow has expressed his delight at tying down the star.
“Securing the long-term future of Jack, a player we believe will play a pivotal role in leading Aston Villa back to where it belongs, is fantastic news for everybody associated with our football club," he said in a statement.
“He is a tremendous talent who has been with us since he was a child and naturally we are delighted that he has now committed the next five years of his career to Aston Villa.”
Grealish made his debut in 2013-14, and has been with the club since 2001.
He has won seven caps for England's Under-21 side, but has not yet been capped at senior level.