The Lisburn lad earned the deal after spending an impressive three years at the Tynecastle club's Academy and is one of only a handful of 'graduates' to be retained at the end of the season.
It was thought he might have been returning home after missing the Scottish Youth Cup final and Northern Ireland's U19 qualifying series in Belguim through injury but club chairman Roman Romanov had other ideas and instructed Academy Director John Murray to offer him the new deal.
David, who joined Hearts from Lisburn Youth, is the son of former Glentoran, Distillery and Ards striker Winkie.
The naturally proud dad described the news as, "Just mind blowing. Skill, determination and self-discipline together with a natural ability have led to his success. He really deserves this."