The 21-year-old midfielder has started every league game for Ronnie Moore's promotion-chasers this season after joining them in August, making 28 appearances.
Moore said: "I've been delighted with Liam this season. He has been a model professional while he has been here and a credit to Sheffield Wednesday.
"He's formed a great partnership with James Wallace and more recently Max Power in the centre of our midfield and has improved as the season has gone on.
"I think there's more to come from him too. He's not scored yet, but I think he has goals in his game.
"I'd like to thank Sheffield Wednesday and Dave Jones for allowing Liam to come back to us."
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