The midfielder, who turned 18 last week, has agreed a new three-year contract with the Blades after a promising breakthrough season upon graduating from the club’s academy.
Not only did he make his England breakthrough for Neil Dewsnip’s Under-18s but he made over 30 appearances for the League One side.
And United boss Nigel Adkins placed home-grown players at the heart of his blueprint to transform the side’s fortunes upon his appointment in the hot-seat earlier this summer, and Reed believes that philosophy makes South Yorkshire the ideal place for him to thrive.
"This is the perfect place for me because the club is known for bringing young players through and giving them a chance," he told the club’s website.
"I’m pleased, really pleased, to get this deal. Now I’ve got to continue improving and trying to make myself a better player because, if I don’t, then I’m not going to impress the manager and get in the team."
Despite something of a whirlwind first season, Reed knows he must continue to improve and impress.
"Everything has happened really quickly but hopefully I can keep building and moving forward," he added.
"You can’t stand still, everyone is competing for a place."
Adkins was delighted to secure the youngster’s future and encouraged him to continue his hard work.
"Louis is another homegrown player and his new contract is another sign of how we appreciate the work that goes on at our Academy at Shireliffe," Adkins said.
"He played a good amount of games last season and was recognised at his age group level by England but Louis is a well-grounded lad and knows that there is plenty of hard work ahead of him as he bids to build a successful football career."