The former Tranmere Rovers boss has been in interim charge since the summer and after a slow start to the season the young Clarets have climbed the Premier League 2 table in recent weeks.
They take on Everton in a Premier League Cup group game this evening aiming to bounce back from defeat to Peterborough in their opener.
The Clarets are up to fourth in the league as they pursue a place in the play-offs and the chance to win promotion to the top tier of development football.
Jackson has promoted several promising Under-18 players to the fold including goalscoring sensation Michael Mellon and midfielder Will Hugill.
Burnley have invested in their Academy in recent years and owners ALK are keen to develop more of a pathway into the first team with Dwight McNeil the only success story over the past few seasons.
Jackson joined Burnley in July after former Under-23 chief Steve Stone stepped up to the first team staff.
The 47-year-old played for the likes of Preston North End, Blackpool and Tranmere Rovers and was appointed manager at the latter in 2020, departing after a poor start to the season.