McCarron, 20, joined Leeds United’s youth rank from Carlisle in 2019.
McCarron was included in Marcelo Bielsa’s senior matchday squad for the first time for the recent Premier League draw at Burnley.
Leeds in a statement confirming McCarron's new deal said;
"We are pleased to announce Liam McCarron has agreed a new two-year deal at Leeds United, keeping him at Elland Road until the summer of 2023.
"The 20-year-old joined the Whites Academy in July 2019, after making his breakthrough in Carlisle United’s first-team during the 2018/19 season.
"A versatile left sided player, McCarron has impressed during his time in the Academy and has gone on to train with Marcelo Bielsa’s first-team group and feature in the matchday squad."
Liam McCarron arrived at Leeds as a winger, making his senior debut for the club at left-back in a pre-season friendly defeat to Ajax in August.
The young left-back was also an unused substitute in The Peacocks' 1-1 draw at Newcastle last week.
Leeds are yet to record a first win in the Premier League this season after five games, drawing five and two losses.
Marcelo Bielsa’s side will be in action on Saturday as they host David Moyes' West Ham United.
Leeds United are currently occupying the 17th position in the league log with 3 points.