Villa manager Dean Smith was looking to bolster his midfield options upon the club's Premier League return, and Luiz had recently impressed on a two-year loan at Girona.
Luiz didn't actually feature once for Manchester City after joining from Vasco da Gama in 2017. However, City manager Pep Guardiola has previously confirmed the club have the option to buy him back in the future.
The 22-year-old midfielder has featured in all three of Villa's Premier League games so far this season. He's helped the club to a perfect start, gaining nine points from nine, including a 7-2 win against reigning champions Liverpool.
Douglas Luiz isn't in contact with Manchester City
Douglas Luiz spoke to Globo Esporte about his relationship with Manchester City while playing for Aston Villa in the Premier League. He's been quoted saying:
“About Man City, I've been doing my job at Villa, I don't really have conversations with City or [Pep] Guardiola. But it's a job that went together, I had help from City with Villa to be able to play in the Premier League. It's a very good thing to be able to play there without any difficulty.”
Luiz also eluded to Villa's emphatic win against Liverpool at the weekend, stating the club have bigger aims after surviving relegation last season.
“We’ve been doing a very good job, we have had time to work. It is a very different season than the one in which we fought not to be relegated. This has strengthened us so that we can do our best this season."
"We had signings that were essential, that adjusted the team, the coach has been doing a great job and we were able to beat the current champions. We want to continue doing our job to stay in the Premier League and aim for something bigger.”
The Brazil international seems content at Villa Park for the time being, but it remains to be seen whether he'd be tempted to return to Manchester City should Pep Guardiola come calling.