The 24-year-old joined the Blues last summer from Brighton and Hove Albion for a reported £54.5million fee after an impressive two seasons with the Seagulls.
He played a starring role in Chelsea's attack last season despite their disappointing form in the league, scoring 23 goals while providing nine assists in 53 appearances in all competitions, helping the club win the revamped 2025 FIFA Club World Cup.
According to reports, the striker has signed a new deal which includes a notable salary increase and an option to stay at the London based club beyond 2032.
“I’m very happy to continue my journey with Chelsea," said Pedro after sealing the new deal.
"This is a club with huge ambitions, and I want to be part of what we are building here. I feel at home, and I'm excited about the future."
The Brazilian's renewal comes fresh off an eye-catching brace in the 3-1 pre-season victory over LaLiga side Real Sociedad last Saturday, which coincided with manager Xabi Alonso's first match in charge at Stamford.
He will be expected to play a huge role in the squad this season which will be hosting Fulham in the West London derby this Saturday.
Chelsea captain Reece James believes he still has some "rust" to shake off before reaching full match fitness after making his return to action in the club's final pre-season fixture.
Newcastle United have completed the signing of Bosnia and Herzegovina international Amar Dedic from Benfica.
Virgil van Dijk has admitted Liverpool's new-look defence will need time to develop, despite praising Ronald Araujo and Jeremy Jacquet as "good players".
David Moyes has admitted Everton still need "quite a few" new players as the manager looks to strengthen his squad before the transfer window closes.
