The 20-year-old goalkeeper joined the club as an Under-12 and has been in-and-around the first team since he signed a professional development contract in 2021.
Horlick has made two appearances in the Premier League Cup and was a part of our Beds Senior Cup triumph in 2023 but has not featured on the bench for the first team this season.
Hatters Under-21 lead coach Adrian Forbes said: “It’s fantastic news that the club have offered Jamo a new deal and well deserved.
“His attitude, work-rate and application has been fantastic over the course of the year, and one thing he’s done really well is that he’s taken the opportunity to learn from more experienced goalkeepers – whether it be Thomas Kaminski, Tim Krul, James Shea – and that’s allowed him to develop himself as a person, as well as a goalkeeper.
“I’ve been really pleased and proud of what he’s achieved so far this season and the future is bright.
“Now he has the opportunity to go on a loan and really test himself in proper football. As yet he’s not had that experience of being in a first team dressing room where if he doesn’t come for a cross or if he does make a mistake, there are three points at stake.
“This loan is good for him for the next stage of his development. It’s perfect for him to go away, learn his trade properly, while still coming back and learning from the more experienced goalkeepers around him. Hopefully it’ll take his career and his game to the next level.”