The deal will see the Town academy product remain at Portman Road until the summer of 2016.
He told the club's official website: "Obviously I'm delighted. Everyone knows this is my home-town club and I want to stay here as long as possible.
"I'm really enjoying my football at the moment and I feel like I am progressing as a player, although I know I have a long, long way to go yet.
"It's a massive boost for me that the manager has given me this new contract and I just want to keep working hard and play my part in moving Ipswich Town forward."
Meanwhile, the Tractor Boys have signed former Crawley winger Jordan Adekunle.
The teenage midfielder has put pen to paper on a one-year contract with the Sky Bet Championship club.
Adekunle has been training with Ipswich and has done enough to convince manager Mick McCarthy that he is deserving of a deal at Portman Road.
The 17-year-old featured against Town for Crawley in pre-season and also turned out for Mark Kennedy's Under-21 side on Monday night as the Tractor Boys lost 2-0 to Cardiff.
He told the club's official website: "I'm delighted to sign for Ipswich. It's a great cub and I can see the rich history of the place just by walking through the corridors here.
"The manager has given me a chance here, so I want to do well for the club and I'm just buzzing for the new season here really."
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- Ipswich Town