The 19-year-old joined the League One club back in October and has gone on to make 15 first-team appearances.
"I am delighted to stay. I've enjoyed the experience and feel I am developing as a player," Evans told Crewe's official website.
"I've spoken to Manchester City and they know that Crewe is a great club for me to play and develop."
Crewe, who are currently in 19th place in the League One table, continue their campaign on Saturday with a trip to Bradford City.