The new deal will keep the 22-year-old at Blackburn until the summer of 2017.
Lowe said: “I’m over the moon. I love playing here and I have done since I started. To extend my stay again is another step in the right direction.
“I have worked hard to improve all aspects of my game and I feel my performances this season reflect that. I will keep pushing myself to get better and to help get results for the team.
“Gary (Bowyer) has instilled a lot of confidence and belief in me, and you need that to play to your potential. He has given me the freedom to show what I can do and for that I am very grateful.”
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.