The young playmaker has inked his first deal with the club, after impressing in 16 senior appearances.
Murray came through the Hebburn Town Juniors set-up, joining the club at the age of four, and earned Northern League experience with neighbours Jarrow last season.
His impressive displays for our U23 side was followed by his first-team debut in December 2021 in the Durham Challenge Cup.
His first goal came away to Lincoln United in March, as he scored from 25-yards out within a minute of his substitution.
The 21-year-old has enjoyed a great run of form under new manager Daniel Moore, which has included two goals and Man of the Match performances against Brighouse Town and Shildon.
"He's been outstanding since he came in," commented Moore.
"I think he's developing around the players he's playing with.
"The step up has challenged him - he was probably comfortable playing where he was, and we're challenging him as well.
"We've told him that we'll stay on his case to make him a better player - we'll work with him and do what we can to make him play for this club at the highest level possible."