Kvyat has scored just four World Championship points this season and has put himself on the verge of a one-race ban after rediscovering his torpedo mode.
But Villeneuve feels he will kept on at Toro Rosso just because of his nationality.
“He did not adapt to Red Bull, so he went back to Toro Rosso. But he did not bounce back,” Villeneuve told Belgian website f1nal-lap.
“He is still not at the level of Sainz, and in addition, he does nothing but stupid things and never learns from them.
“[Pierre] Gasly is coming, but the chance that Kvyat stays is because Red Bull needs a Russian.
“Clearly he does not deserve his place this year. He’s there purely for political and media reasons.”
Villlenueve is also not a big fan of Carlos Sainz, who has openly tried to engineer a move away from the Red Bull’s junior team this season.
“He stays in a straight line – he’s the same driver he was three or four years ago,” he added.
“Also, he so often spits on Toro Rosso – ‘the car is no good, I don’t want to be in the team’. I would not be surprised if these two do not continue for long in F1.”