The news will come as a huge relief to Sky Blues fans as the 21-year-old Academy graduate attracts a host of admirers having bagged 10 goals in 14 league starts so far this term in what is his breakthrough season.
Wilson's new deal also comes with the option of a further 12 months in Coventry's favour, and boss Steven Pressley is delighted to tie down the youngster's services.
"Callum has been magnificent for us this season. He's a great kid, he deserves this new deal and we're absolutely delighted that he has accepted it," Pressley said.
"He has been an integral part in our climb up the table so far and with him now having committed his future to us, hopefully he can help us continue the run of form we have been on.
"Nobody has been more pleased than me with the way he has formed such an understanding with Leon Clarke up front and I know fans want to see that continue.
"He's a Coventry boy with a desire to see Coventry City succeed and he has displayed exactly the kind of mentality and work-ethic that I want to be the cornerstone of this club."