The promising youngster is the latest talented player to commit his future to the Hunter Stadium club, following the example of Andrew Taggart, Ben Kantarovski and Jacob Pepper
The 19-year-old has quickly cemented his place in Newcastle's starting line-up, having started in each of his six games this campaign before an ankle injury sidelined him from the Jets' last two matches.
Chapman, who has now played a total of 25 A-League games, was delighted to have committed his immediate future to the Hunter Stadium outfit.
"I am really enjoying my time in Newcastle and everyone at the club, the fans and the whole town has been great to me," Chapman said.
"The club has shown a lot of faith in some of the younger players like myself and I think you can see with a quite a few of us re-signing that we want to repay that."
Chapman said the prospect of success with Newcastle in the not-too-distant future was too good to refuse.
"We've had our ups and downs over the past couple of seasons but I really feel like we're headed in the right direction and there are exciting times ahead and I want to be part of that," he said.
"The results this season have been really positive so far and I think we can keep growing and improving as players and as a team."
Click here to catch all the action from Friday night's A-League game LIVE
Goal Australia now has its own and account, so for all the latest news and features on Australian football follow us by clicking on the above links.