The midfielder's current deal was due to expire at the end of this season but he has become a vital part of Marcelo Bielsa's team having battled back from almost two full years out of action with a hip injury.
He arrived at Elland Road from Middlesbrough in January 2018 and made a dozen appearances during the second half of the 2017/18 campaign. Under Bielsa he played a key role in Leeds' first crack at promotion but was struck by a complex hip problem in the Autumn of 2019. Surgeries and set-backs cost him 22 months of football before a successful comeback in the Carabao Cup against Crewe at Elland Road last August.
Since then, he has played all but 18 minutes of Leeds' last eight Premier League games. The consistency of his performances and the energy he's brought to the midfield area have helped bolster his case for a new contract. He shone on his return against the Foxes and has ticked along nicely ever since. His tigerish display in the win over Burnley was particularly pivotal. Leeds also took into consideration his conduct during his injury nightmare. Forshaw himself has admitted the situation left him bitterly frustrated at times but he remained a positive influence at the club and played his part behind the scenes at Thorp Arch.
The new deal will come as a huge boost for the player after a difficult period in his career.
Speaking before the turn of the year he spoke of his desire to stay and his fondness for the region.
"My kids are in pre-school, we've loved it, I've never enjoyed living somewhere as much as I've enjoyed living here and I've had a torrid time on the pitch, so that say a lot about the people and the area and what I think of the place," he told BBC Leeds.
"I'm just enjoying playing again and see what the future holds. I hope [to stay], I don't know. It's not up to me. I just want to keep playing, stay in the team and help them climb up the table."
A club statement said: "Adam Forshaw has agreed a one-year extension keeping him at Elland Road until the summer of 2023. The club also holds an option within the new contract to extend it by a further 12 months."