Kjell Scherpen has signed a new contract with the club until June 2027.
The 23-year-old goalkeeper is currently on loan with Sturm Graz in Austria.
Technical director David Weir said, "Kjell has done really well with Sturm Graz and had a very good first half of the season there, building on last season's loan with Vitesse Arnhem.
"Sturm Graz are second in the table going into the winter break and Kjell has been a key player for the club.
"This new contract is a result of the good progress Kjell has made across both those loan spells, and we are pleased to have furthered his stay with us."
Kjell began his career in the Netherlands with second-tier club FC Emmen where he made over 30 senior appearances before joining Ajax in July 2019.
By then he had already made his first start for the Dutch under-21s, having also represented them at under-19 level.
He made four first-team appearances in the 2020/21 season for Ajax, including one in the Europa League.
Kjell joined Albion in the summer of 2021 and made his debut in January 2022, starting in Albion's FA Cup third round win at West Brom.
He spent last season on loan with Vitesse Arnhem, making 26 appearances for the Eredivisie side.