The new deal is valid until June 2028 with the 17-year-old deciding to continue his development in the Championship and hopefully the Premier League next season.
The midfielder has been trusted heavily by Daniel Farke this season with the German coach playing him in 28 matches during the current campaign.
Gray has impressed everyone at Leeds and that has earned him a new long-term contract but it was also to fend off interest from other clubs.
According to the Daily Mail, Liverpool are one club interested in Gray and were planning on making a £40m move for the youngster this summer. That plan has taken a blow with this latest news as Jurgen Klopp is keen to add more midfielders to his squad.
The report states that Crystal Palace and Everton also have an interest in the Leeds star and if any of these clubs want Gray this summer, a big fee worth over £40m will likely have to be paid.
Either way, this new deal is great news for Leeds as the 17-year-old will aid their future one way or another.
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