The 26-year-old joined the Daggers in August 2011 but suffered a serious knee injury the following month and was sidelined for six months.
This season the former MK Dons man has made himself a regular in John Still's midfield, playing in every league match.
Still said: "Losing Luke to injury was a big blow for us last year. However, he has come back this year and got himself fit. With Luke still at a young age I'm sure we are going to see him improving."