The 18-year-old, who has made two Championship appearances, has agreed a three-and-a-half-year deal.
"Rushian is highly thought of at this football club," said Villa manager Steve Bruce.
"I believe he has a bright future in the game. He needs to get his head down now, work hard in training - and the opportunities will come."
Hepburn-Murphy, who made his first-team debut in March 2015 at just 16 years of age as a late substitute in the 4-0 Premier League win at Sunderland, has been on Villa's books since the age of nine.
He also came on late in last season's final home game against Newcastle and has come off the bench twice this season, again at home to Newcastle, then in the New Year defeat at Cardiff City.
Aston Villa's teenage striker Rushian Hepburn-Murphy has signed a new contract with the Championship club.