OWLS midfield player Liam Palmer has signed a new two-and-a-half-year deal.
His loan at League One leaders Tranmere has been extended for the rest of the season but he sees his long-term future at Hillsborough.
“It’s been a great learning curve for me and it feels like I’ve come a long way since starting out at the Wednesday academy,” said the 21-year-old who has spent the first half of the season at Tranmere.
“It goes to show it’s there for the taking if you want it and work hard enough for it.
“I definitely see my long-term future at Sheffield Wednesday but I’m really looking forward to helping Tranmere in their push for promotion.”
His contract with the Owls was due to run out in the summer.