The Tractor Boys have secured their talented left-back through to the summer of 2028.Per TWTD, the 24-year-old had been speaking with the club since the summer about renewing.
Davis, who joined Town from Leeds for around £1 million back in 2022, has been a key player for manager Kieran McKenna.
“I am really pleased to have signed a new contract,” Davis said.
“I have loved my time at the club so far and have improved so much during my two seasons here working with this group of players and under a manager who has done so much for me. This feels like home now and I am excited to continue the journey.”
Manager McKenna added: “We are all delighted that Leif has committed his future to the club.
“Leif has made huge strides over the last two-and-a-half seasons and has developed well, both as a player and as a young man.
“He has been an important part of the successes of the last two seasons and now has the opportunity to play regularly in the Premier League for the first time in his career.