The highly-rated central defender joined the Blues from Walsall four years ago and made his England Under-20 debut earlier this season as well as impressing at EDS level.
He has featured on the subs bench for the first team several times in recent weeks and could be in line for his senior debut after Roberto Mancini lost Micah Richards and Jerome Boateng within the space of 48 hours this week.
“I’ve been working really hard to improve all areas of my game so I’m delighted to have signed this new deal,” said the 19-year-old.
“It was a big relief to know one of the most ambitious - and soon to be biggest - clubs in the world wants me to be part of their future.
“The coaches have all shown great faith in me and have told me how highly they think of me, which is really nice to hear.
Now I want to fulfil my potential and pay that faith back
...Reece Wabara
Wabara, who believes EDS coach Andy Welsh as well as Brian Kidd and David Platt have helped his development this year, hails from the football hotbed of Quinton, near Birmingham. It’s a town that has already spawned Joleon Lescott and Daniel Sturridge, but the ties are even closer than that.
“Yeah, we all came from the same school,” he laughed. “I get on well with Joleon so we’re doing our hometown proud, I suppose.”
Wabara is expected to be included in the squad for the visit of Sunderland on Sunday and if he’s called upon, he feels ready for the step up.
“I’ve been sub a few times and trained with the first team quite a lot so I feel that I’m at lot closer than I’ve ever been before in that aspect,” he said.
“I don’t know whether I’ll be involved against Sunderland or not yet so I just need to work hard and be prepared if and when I’m needed.
“Anything is a bonus right now, but I play at right-back when I train with the first team and I love playing there so it would be nothing new.
“Whatever happens, I want to repay the faith the club has shown in me and make everyone proud.”
