The 30-year-old Spain international, who moved to the LaLiga leaders from Manchester United 10 years ago, has committed his future to the 24-time Spanish champions until 2022 - with a buyout clause of 500 million euros (£441.6m).
A statement on the club's website read: "Barcelona and player Gerard Pique have reached an agreement to renew the player's contract through to June 30 2022. His buyout clause has been set at 500 million euros.
"In the coming days the club will announce the date of the official signing of the new contract, which will keep the La Masia product at Barcelona for the rest of the current season and for the next four years."
The former Barca youth player - who began his junior career in 1997, aged 10 - moved to Old Trafford in 2004 before spending time on loan at Real Zaragoza. He rejoined his boyhood club under Pep Guardiola in 2008.
At Barca he counts 37 goals from 422 appearances and has won three Champions Leagues, six LaLiga titles, five Copa del Reys, five Spanish Supercopas, three European Supercups and three Club World Cups as well as the World Cup with Spain in 2010.
Additional reporting by the Press Association.