Speaking after putting pen to paper, Flood said: Newcastle is the natural place for me to develop as a player, and Ive really enjoyed my rugby here so far.
Working every day with people like Matt Burke, Jonny Wilkinson, Rob Andrew, Jamie Noon and Dave Walder can only help your game, and Im really looking forward to the next two years with the way the team is progressing at the moment.
I have learnt a lot under John Fletcher and Peter Walton during my time in the academy, and its great to be coming through at the same time as a lot of other younger players who have really stepped up this year.
The former Alnwick, Morpeth and Northumberland player is currently studying a business management degree at Northumbria University along with his rugby commitments, saying: Thats an important part of my life and I want to continue with it as much as I can.
The club has been really helpful in encouraging players to take up academic courses as well as their rugby, and wherever possible theyre very understanding in allowing me time to study.
This is my local club, and Ive enjoyed every minute of it so far, so Im just glad to have sorted things out for the next two years.
Director of rugby, Rob Andrew, said: Toby is clearly a very talented player, and he has shown a huge amount of maturity since coming in to the side.
The fact that he is competing with full international players for a starting place in the team week in week out says it all, and he is yet another example of the fantastic work going on in the clubs academy programme.
We see Toby developing at inside centre as well as fly half, and he has already showed he can play both positions well, so we look forward to taking him on to the next level and helping him fulfil his enormous potential.