The new deal will keep the 18-year-old at Portman Road until the summer of 2014.
The talented striker has recently been linked with a host of Premier League clubs, including Tottenham.
“It might stop all the speculation, for a little bit anyway,” Ipswich boss Paul Jewell told BBC Radio Suffolk.
“A lot is expected of Connor Wickham every time he goes on the pitch but what people have to remember is he’s only 18, sometimes I have to remember he’s only 18.
“He’s only been in the game two minutes and an awful lot has been said about him and he deals with it really well.
“Hopefully we can develop him as a player and help him become a Premier League player, hopefully with us.”
