"I am coming back to Aston Villa on June 1 and, as far as I am concerned, it is with a view to trying to make a go of my career there," he told the Birmingham Post.
"My career at Aston Villa is not over and I want to start afresh."
Balaban was signed by former boss John Gregory in a £5.8million move from Dinamo Zagreb in August 2001 but failed to make an impact at Villa and was loaned back to his former club last summer - where ironically is set to pick up a Championship winning medal.