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The youngster who had originally signed a three-year-deal in August, has been offered an improved offer after a superb season in the United first eleven.
Byram, who has shone down the right-flank for Leeds, made his debut in the Capital One Cup against Shrewsbury before going on to making 35 appearances for the Whites.
After taking his chance during pre-season in the summer, Byram is now one of the first names on the team sheet at Elland Road and the news will delight fans after a week where another fan favourite is set to leave.
Against Oxford, Byram showed maturity beyond his years to score a spectacular chip and Leeds fans will be looking for many more appearances in the famous white shirt over the coming years.