The Lions confirmed the midfielder will leave the club at the end of this season.
The 23-year-old moved from Australia to England to join the youth academy of Villa.
After showing signs of quick progression, Lyden got his senior call-up back in 2015.
Since then, the defensive midfielder has made only seven appearances often spending his time at the reserves.
The youngster returned to Villa this year after his successful loan spell at Oldham Athletic but he picked up an injury shortly which ruled him out for the remainder of the season.
And with his contract nearing its end, the club has decided not to prolong his extension. (h/t The Sun)
Lyden took to Instagram to express his thoughts over the exit.
He showed his gratitude to the club and the fans for making him grow as a player. He later wished Villa good luck in pursuit of promotion.
Dean Smith’s side after going through a slight dip in form was able to bounce back in the recent weeks.
View this post on Instagram
Unfortunately my 14 years at Aston Villa has come to an end 😔 Ive had many ups and downs throughout my time here but it’s been a very enjoyable journey 😀 would like to thank every single person involved in the club for helping me grow as a player, a person and also sticking by me through my injuries! I wish Aston Villa the very best in reaching their goal of getting back into the premier league where the club belongs! One door closes…another one opens 👀😀 now time to start a new chapter 👊🏽⚽️
They have won all of their last games in which the notable victories came against Middlesbrough and Second City rival Birmingham City.
The results saw a drastic change in the table with the Lions moving to sixth from eleventh position.
Jack Grealish is turning out to be the go-to guy for Smith after his return from injury. The midfielder also earned the captaincy role as per the manager’s decision.
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The Lions will face Blackburn in their next match at Villa Park.