Danso's deal was due to expire this month, but he has agreed to extend his stay at St Mary's Stadium until the end of July.
The 20-year-old, who will be available for the run-in has made 10 appearances in all competitions for The Saints and provided one assist.
The Austrian-born defender of Ghanaian descent joined the English Premier League side prior to the start of the 2019/20 season for a season-long loan spell from German side Augsburg.
Despite a difficult spell in England, he has still managed to earn interest from VfB Stuttgart with the German Bundesliga 2 side keen to secure his services for the next season. Read Full Story
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