The 19-year-old has made a strong start to the season in the Premier League 2, scoring four goals in the first six games.
Loupalo-Bi expressed his enthusiasm about the new deal, saying it's an "amazing feeling" to commit to his boyhood club.
He has been with Fulham for a long time and has experienced ups and downs, but is currently enjoying his football and wants to continue improving.
Loupalo-Bi aims to take his game to the next level, potentially earning a spot in the First Team or gaining senior experience through a loan move by January.