The 23-year-old puts pen to paper on a three and-a-half-year deal, keeping Liam at Oakwell until the summer of 2026, with an option of another year in the Club's favour.
Featuring 25 times for the Reds in the 22/23 campaign, the Harrogate-born defender has become an important figure in Michael Duff's backline - one of the most stringent defences in the division so far this season.
"I'm delighted to have committed my future at this fantastic club," said Kitching. "I can't wait to make more memories in a Barnsley shirt and help the Club realise their ambitions in the future.
"I feel I have developed massively since joining and I'm excited to continue growing my game here and playing week in, week out in front of the supporters.
"A big thank you to the fans for their backing during my time here so far. Let's go and create more brilliant memories together. You Reds!"
CEO of Barnsley FC, Khaled El-Ahmad, added: "We are pleased that Liam has made the decision to continue his development here at Oakwell.
"He has grown as a player and a leader since joining the Club and particularly under the guidance of Michael this campaign. Furthermore, Liam is a local player who understands what it takes to play for an historic Club with such pride like Barnsley and what it means to the fans in the stands.
"Everyone at Oakwell would like to congratulate Liam on his new contract and wish him all the best for the rest of his stay in a Red shirt."
Watch Liam and the rest of the side at Oakwell for the remainder of this season with our Half Season Ticket!
Available online, over the phone on 01226 21183 or via our Box Office at Oakwell, secure your seat for the second half of the Sky Bet League One campaign at home!