Luker, 18, has been an unused substitute on four occasions for the Hatters first team this season after impressing with the Development squad.
The Peckham-born midfielder was handed a trial for the Town after scoring against us for ProDirect’s East London academy before he was offered a professional development contract at Kenilworth Road in March.
First team manager Rob Edwards said: “We’re really pleased that we’ve agreed with Jayden to extend his contract. We’ve got high hopes for him.
“He’s got a fantastic attitude. Physically he’s very good and technically, he’s a footballer that has got real good levels of quality. He ticks a lot of boxes in terms of athleticism, ability and attitude, so he deserves it.
“He’s got to keep working hard, because the difficulty now for these young players is to break into a Premier League team, which is not easy.
“But he’s training with us every day and he holds his own well, so long-term there is a good young player there that can have a bright future.”
Development squad head coach Adrian Forbes said: “Jayden has been superb since he came back in for pre-season. His attitude, work-rate and desire to listen and develop has been first class from an academy point of view.
“He’s taken on board the detail and information from Rob when training with the first team which has allowed him to thrive.
“It’s been really rewarding to see how many times he’s been on the bench for Premier League fixtures, he’s still got more work to do to get that debut but if he keeps continuing as he is, hopefully that won’t be too far away.
“It’s great to see Jayden along the likes of Zack Nelson, Jake Burger, Aidan Francis-Clarke; Joe Johnson being in-and-around the first team and being on the bench.
“It shows the rest of the Development squad group that there is no glass ceiling, if they all keep working hard and are prepared to put hard work in, they are at a club with first team staff that will back them, trust them and put them in at the right opportunity.
“The hard work for Jayden really starts now, he’s got the contract but there’s still a lot of work to do. I’m sure if he continues to execute that correct attitude and application, that debut won’t be far away for him.”