The midfielder, who joined the club in 2012, had entered the last year on his previous deal, but will now remain at Old Trafford until 2023, with the option of a further year.
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Pereira spent two season-long loan spells in Spain with Getafe and Valencia and has made just 11 starts for the club, but played 22 times last season and impressed Ole Gunnar Solskjaer after being given a first-team chance under former boss Jose Mourinho last summer.
“I have spent so long in Manchester that I now regard the city and the club as my home and I’m extremely happy to continue my career here,” Pereira told the club’s official website.
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