The new deal will keep the 17-year-old with the Terriers until the summer of 2017.
Charles is yet to make his first-team debut for Huddersfield. The youngster's previous deal was due to run until next summer.
Huddersfield academy manager Mark Lillis told Town's official website: "The club has plenty of belief in its young players.
"It shows the club's confidence in Jake to offer him a new contract and he now has time to develop here as a young footballer.
"Jake has set off this season really well, but he is still learning the game and will continue to listen and develop.
"He is playing in the 'number 10' role at the moment, which he has adapted to really well and scored a few goals from, including a hat-trick at Sheffield Wednesday."