Levi was signed until 2018, however the new contract will secure Levi at the Club until at least the 2020 season.
“Our strategy is to retain our best young talent and build a team around them,” coach Nathan Brown said.
“In his third year of football, Danny shows continual improvement and a real desire to represent our footy Club.”
The 21-year-old New Zealander, who made his debut in Round 15 in 2015, has notched up 30 NRL games for the Knights.
The Knights hooker has also represented his homeland and played for the Junior Kiwis two years running and joined the senior Kiwi squad as a development player in 2016.
As a one-Club player, Levi maintains it is great to be able to continue his career with the red and blue.
“I have been here since the start of my career so it’s good to get another three years on top of that,” Levi explained.
“Since I moved to Newcastle I thought it was such a beautiful place.
“It is nice and chilled out, there are awesome people around so definitely somewhere I feel I see myself in the future.”
Levi believes the Club is moving in the right direction.
“I like what’s going to happen here and I feel like we’re building something,” Levi explained.
“I definitely want to be a part of that and hopefully be one of the players to help that along.
“I have still got a lot to work on and a lot to improve on but at the moment I feel like my game is getting better.”
Levi has re-signed alongside fellow Knights’ forward Mitch Barnett, who also recently extended his contract until 2020.
“He is definitely an influence on this team, he’s pretty cheeky and a real work horse,” laughed Levi.
“He is someone we need in the Club and someone who is definitely going to help us go forward.”