The 19-year-old attacking midfield player made his first-team debut in a 1-0 FA Cup defeat to Sunderland last season, coming on as a late substitute for England international Adam Lallana.
McQueen is tipped to be one of the club's rising stars and has been rewarded with a new long-term deal.
"It's something which has been talked about and that I've been aiming at for a while so to finally get it and have it signed is a dream come true now," he told the club's official website. "Four years is more than I could have hoped for, so now it’s just a case of it's signed and I'll get my head down to start as soon as possible."
The Southampton-born youngster, who was been on the club's books since the age of eight, played alongside James Ward-Prowse, Luke Shaw, Calum Chambers and Harrison Reed in the youth ranks, and is looking forward to linking up with his peers once again.
"I've known them since I was young and we have come through together so we are good friends," he continued. "We've all played football together and worked together a lot so we've get on well, but more than that I’ve been around the first team towards the end of last season so I know a few in the squad too.
"I've talked to a few of them, they're all a friendly bunch so I'm hoping to be around them as much as possible in the coming years, which is something to look forward to."
Southampton will be under the stewardship of Ronald Koeman next season after the Dutchman was appointed as Mauricio Pochettino's successor earlier this week.
