The Brazil international joined Chelsea from Brighton in July 2025 and made an immediate impact, scoring twice against Fluminense in the FIFA Club World Cup semi-final before finding the net again in the final against Paris Saint-Germain as the Blues lifted the trophy.
His impressive form continued throughout his first full season in west London. Joao Pedro scored 20 goals in all competitions and was voted Chelsea's Player of the Season by the club's supporters.
The 24-year-old said he was delighted to extend his stay.
"I am very happy to sign a new contract with Chelsea," Joao Pedro said. "I always dreamed of playing for a big club, and it means a lot to me to give my long-term commitment to this club."
"Chelsea has a long tradition of winning and it has big ambitions for the future."
Pedro also revealed how quickly he settled into life at the club and in London.
"I have a very good relationship with everyone here at the club and I have felt at home here in London from the moment that I joined."
His goals proved important during the 2025/26 campaign. He opened his Premier League account for the season against West Ham United and later scored the only goal in Chelsea's away victory over Tottenham Hotspur.
He also made his mark in the Champions League, scoring twice in a win over Napoli.
Now, with Xabi Alonso beginning his competitive reign as Chelsea head coach, Pedro believes the squad can challenge for major honours again.
"Everyone is very excited for this season. We know we can achieve a lot of things, we have a great team, we have a coach who wants to win and has won already," he said.
"I am fully committed, everyone is ready and hopefully we can achieve our targets."
Chelsea begin their Premier League campaign against Fulham at Craven Cottage on Monday, with the London derby marking Alonso's first competitive match in charge.
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