The 20-year-old'a new deal will keep him at Oakwell until the summer of 2016.
A product of the Barnsley F.C. Academy, Danny has two senior goals to his name for the Reds - a late winner over Burnley that set his side on a great FA Cup run last year, and a late equaliser at Ipswich Town that same month.
Speaking to barnsleyfc.co.uk, Danny said, "I'm pleased and proud to extend my stay at the club I love. I'm determined to get a shirt in the starting eleven, as there's no better feeling than pulling on that red shirt and sticking the ball in the net. The hard work continues and I'm just looking to improve myself as a player and person over the next two-and-a-half years and beyond. Once again I'd like to thank everyone in the Academy, all of my friends and family for their support."
Reds Manager Danny Wilson added, "Danny is one of a number of younger players the Club feel have very good potential. The games I've watched him in over recent weeks, he's been very impressive. From my point of view, there's nothing better than seeing one of your own coming through and it's testament to everybody in the Academy for their hard work, so let's hope there's more to come."