The 19-year-old - who is the current captain of the club's Under-23s outfit - has made one senior appearance for the Whites so far, which came against Hull City in last season's Carabao Cup competition.
Cresswell was part of Mark Jackson's title winners in the Premier League 2 last term at development level and has featured in both games in the top division so far in his head coach's guidance.
He was also named on the bench in the top flight under first team boss Marcelo Bielsa against Everton and again in midweek for the hosting of League One Crewe Alexandra.
Cresswell's performances also earned him a call-up for the England Under-19s in the 2020/21 campaign along with a Player of the Season nomination at academy level.
United have now rewarded one of the club's brightest Thorp Arch talents with a deal until the summer of 2025.
"I think it's a dying breed in the modern game," Under-23s head coach Jackson said of his centre-back after defeat to Tottenham Hotspur on Monday afternoon.
"I tried to be quite vocal myself when I was a player, nowhere near the ability of Charlie or the players in this group but I tried to talk.
"Charlie's got that, he understands how to lead and we've been working with him a long time, in the academy even, when he first broke through in the 18s as a 16-year-old, [working] on his leadership skills.
"But like anything, with his football skills, leadership skills can be developed. Even on the bench in the second half, he's still talking behind me so that's a positive because you don't find many of them these days and we've got to try and embrace that, he's got to try embrace it and develop it as well - and that's a real positive within his game."