The 21-year-old Academy graduate has made five starts for Town this season and fits perfectly into manager Paul Jewell's desire to bring through youth to accompany experience at Portman Road.
"I'm delighted to have signed the new deal and now I'm looking to push on with Ipswich," Hyam told Town's official website.
"It was disappointing to be out of the side earlier in the season but I've worked hard and forced my way back into the team and I'd like to think I've been rewarded with this new contract.
"The manager has told me to carry on working hard and I'm looking to become a regular in the side now.
"I'm really enjoying my football at the minute and it's great to be playing regularly for Ipswich."
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