Webb-Foster, 17, penned his maiden pro deal at the Coral Windows Stadium alongside City Chief Operating Officer James Mason.
The contract will keep Webb-Foster, who is a second year scholar at the club, at the Coral Windows Stadium until July 2018.
Webb-Foster made his senior City debut in the closing stages of the club's Capital One Cup tie at Milton Keynes Dons last season aged only 16 years and 200 days - a mere 59 days older than the youngest player ever to play for the club, Robert Cullingford.
He also featured from the bench during City's Sky Bet League 1 away match at Gillingham back in April.
Having netted 17 goals for City's youth team during the 2013/2014 campaign while still registered as an under 16 player, Webb-Foster finished last season as top scorer for the under 18s, helping them to retain their Football League Youth Alliance North East Division title in the process.
Webb-Foster will wear squad number 34 for the remainder of this season.