The 19-year-old spent time on loan with Bradford Bulls last season before helping Leeds to Challenge Cup success.
Sutcliffe, who has made 44 first-team appearances, told BBC Radio Leeds: "When I got approached with a new deal I had no hesitation in signing it.
"I only signed a four-year deal last year so to be offered another one so soon was a bit of a surprise. I've got to work hard and try to push on."
Head coach Brian McDermott said: "Liam has already shown he has all the qualities needed to succeed at Super League level."
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