Liverpool initially wanted to pay Villa in three instalments and after being told they had to do it in two, went away to work on the finances, which is said to have caused the delay.
Aston Villa immediately issued a statement saying Barry was staying and Villa boss Martin O'Neill has also spoken of his delight that the midfielder's future has been resolved.
"Naturally we're all absolutely delighted that Gareth will be staying at Villa Park and relieved that there is resolution and closure to the transfer saga," O'Neill told the club's official website.
"At a very positive meeting on Monday it was agreed between Gareth, his agent, Mr Lerner and myself that a deadline should be communicated to Liverpool to finally resolve the situation.
"Liverpool were informed and that deadline came and passed. Now we can all look forward to the season ahead with relief, anticipation and ambition."
However, it is believed the saga is far from over and Liverpool are set to continue their pursuit now that they have got the money in place.




