Beckham suffered a dip in form for both Real Madrid and England in the run-up to Christmas, prompting renewed doubts in the British media over whether the midfielder should still be skipper and a first-choice on the right.
Eriksson believes that spell in the doldrums is now over, telling reporters on Tuesday: "I'm sure he wants to demonstrate that he's not finished as a footballer - and of course, he's not.
"I think Real Madrid are playing much better football now, they're more organised, more disciplined and it seems the team are fitter than they were two or three months ago. And, of course, that helps David Beckham as well.
"I think Beckham, after Christmas, has played many good games...I talked to him yesterday and he said he felt much better, fitter than a couple of months ago."
Media speculation over his international future followed England's 1-0 friendly defeat by Spain in Madrid last November, when Beckham was replaced after an hour by a player many see as his successor, winger Shaun Wright-Phillips.
Dismissing the talk, Eriksson said: "All the discussion about David Beckham not being the captain, not playing for the team and being finished with the England job, I never understood that."
GOOD JOB
Looking back, Eriksson said: "I've more or less always been very happy with David Beckham. Sometimes, I know he can do better, but more or less all the time he's done a good job for England.
"(But) of course it's good to have other options as well."
Real
"If you take the positive side of it, he will not be tired because he's not been playing that much," Eriksson said.
"But, of course, it must be a little bit frustrating for him. He's not used to a situation like that, he's always been one of those picked first of all and suddenly he's sitting on the bench a lot of the time.
"But more or less every time he comes on for Real Madrid he scores, so he can't do much better. And he will always play very well for us, I'm sure about that."
Owen, Wayne Rooney and Wright-Phillips are set to form a three-man attack in a 4-3-3 formation at Villa Park, supported by Beckham, Steven Gerrard in the middle and Frank Lampard on the left.
"We have to play better than we did in Spain, of course, I will tell them that," said Eriksson. "I knew and they knew it was not a big performance. It will be better tomorrow."
Eriksson put some of the blame down to the racist abuse that England's black players were subjected to in Madrid.
Asked if he would take his players off if they suffered similar abuse in the future, Eriksson said he wanted clear rules first from the likes of FIFA, UEFA and the FA.
"A friendly is one thing but if you do it in a qualification game what happens?", said the Swede.
"Could we lose the three points or not? I know racism is more important than that but at the end I don't want to be responsible for not taking England to the World Cup.
"It would be a blow for the whole country.