The Scotland under-19 international has been training with Steve Bruce's first team squad for the past few weeks and was an unused substitute in September's Carabao Cup tie at Newport County.
He penned his first professional deal last November - just after his 17th birthday - and has been with the Magpies since the age of eight.
Anderson's grandfather, Geoff Allen, played as a winger for Newcastle United during the 1960s and was part of the squad which famously won the Inter-Cities Fairs Cup in 1969.
Hailing from Whitley Bay, the highly-rated Anderson played for the renowned Wallsend Boys Club before joining the Magpies.
"It's a year on from my first one and when I got told that they were going to offer me a new contract, I was buzzing," he said. "I didn't really expect it but it makes you want to keep pushing on and see that rewards are given here. It helps you keep going and I'm really pleased."
Read an interview with Elliot Anderson here