The ex-Bristol City full-back, 20, has established himself at Craven Cottage this season, making 13 league outings.
Assistant boss Steve Kean said: "He's done fantastically well in coming into the side. He shows wonderful enthusiasm and is improving week by week.
"He's good going forward and, as we've all seen, is a very good one-on-one defender. It's great news for the club and for Liam."
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Match of the Day - Post-match interviews