The 28-year-old Portugal international has made over 100 appearances for the Foxes since joining from FC Porto in the summer of 2018.
Pereira’s previous contract would have expired next summer but he will be staying at the King Power Stadium for three more years.
Pereira helped Leicester win the FA Cup last season and the Community Shield at the start of this season.
“I’m feeling good,” Ricardo told LCFC TV, after signing his new deal.
“I would say this is the natural thing to happen. I’m happy here. I think the club is happy. It’s a win-win situation.
“Of course I’m happy with the contract, but then the main thing is to be fit and healthy. To be able to play, to help and to give my best.
“We know what it’s like to win now. We know the sensation. We know the feelings that we had.
“We know the joy we brought to the club, to the supporters, to the city. We want to do it again, to be happy again, to make them happy again, and to do the best for the club.
“The potential is here. We showed that last season and this season. We’re not at the level we want, we need to be more consistent, and I think we’re on the right way.
“We just have to do that extra and to have a little bit more luck sometimes. This season is long. We can still make a very good season and that’s what we work towards.”
Fitness issues have restricted Pereira to just 14 appearances in all competitions this season.
