Hudson, who will turn 18 in February next year, has penned a two-year contract with the football club with the option of a further year's extension.
The talented left winger has already made his senior debut with Stuart McCall's side after coming on as a second half substitute in last month's Checkatrade Trophy win over Stoke City.
Hudson, who is pictured right in the main article image alongside joint-owner Edin Rahic, was also an unused substitute in City's 1-1 draw at Millwall in Sky Bet League One earlier this month.
Known for his turn of pace and ability to dribble effortlessly past players with the ball, Hudson caught the eye recently in City's youth team after a superb solo goal in their 5-1 win over Grimsby Town.
Supporters can see the goal via the video screen at the bottom of the article.
The Bradford-born winger featured in a number of City's reserves matches last season during their title-winning campaign, the youngster scoring an eye-catching individual goal in a home match against Shrewsbury Town.
Hudson has been with City since joining the club's academy set-up at the age of 8.
He said: "I've dreamt of this moment ever since I started playing football really.
"It was great to make my full debut on the pitch against Stoke earlier in the season - it was something I've worked so hard for. It was still a big shock for me though when I was offered this deal.
"There is obviously a massive step-up from youth team to first team but I think I have managed to cope quite well in training.
"It is a lot more physical but I will have to make sure I handle it all, keep trying to play my football and trying to impress.
"Playing in the reserves last season I think helped me with my progression as well, that is obviously another step up from the youth team.
"I played with Daniel Devine last season and I think he has set a good standard for other young players coming through like myself. He is a good role model."
Bantams chief Stuart McCall added: "When myself and Kenny (Black) first came to the club Ellis was one of the players highlighted by the youth set-up as one for us to watch.
"Certainly when we've had him in training and when we've watched the youth team games, he has stood out.
"He also did really well during the game-time he got against Stoke City (in the Checkatrade Trophy).
"Ellis has got really good potential, a lot of ability, and a lovely left foot.
"The hard work starts now for him though. The aim for him, with the help of the staff here at the club, is to keep developing as a person and as a player.
"He definitely has the potential to go on and be a good player for us, it is just a case of how we develop that potential now."
Co-owner Edin Rahic said: "Ellis is a very good character. We have met with his family, which is important to us as a club to show we care about our young players to give them all the support they need.
Co-owner Edin Rahic said: "Ellis is a very good character. We have met with his family, which is important to us as a club to show we care about our young players to give them all the support they need.
"It's up to us to give young talent a chance and to show other players that Bradford City would be a great club to join at an early age like Ellis did."