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The 19-year-old defender who has been with the Robins since the age of 10 made his first-team debut in the club's 1-0 win at Southampton earlier this month, just a couple of weeks after return from a three month loan spell a Brentford.
As a Welsh under-21 international and playing at the club he has supported all his life, Wilson described being offered an extension to his City contract as a 'dream' and believes that he can 'have a big future' something which City boss Gary Johnson agrees with, he told the official website,
"James has had a terrific last 12 months and fully deserves this contract.
"We watched him throughout his time at Brentford and there he proved he was a capable league player.
"He's got a big future ahead of him. He needs to keep performing, training like he does and he will end up a Championship player at the very least.
"James is versatile in that he can play at right-back or centre-back but I personally think he will ply his trade as a centre-half.
"He's 6ft 3in already and is very quick, athletic and leaps well."
Wilson could play a part in City's game at Crystal Palace this weekend with Louis Carey still doubtful. Despite initial injury fears on Tuesday when he was stretchered off in a reserves victory, Johnson said that Wilson should be 'fine' should he be called upon.
He told teamtalk.com,