The Spain worldwide joined the Catalan giants from Manchester United in 2008 and has gone on to make over 250 appearances for the La Liga giants during his 10 years in the city.
The Spain global, 30, has played 422 games for the Catalan club since rejoining from Manchester United in 2008.
"The club and the player have agreed terms on a new deal through to June 30, 2022". He has been part of both historic Barcelona trebles (2008/09 and 2014/15) and is also a three-time FIFA Club World Cup victor.
Barcelona have put a 500 million euros ($611 million) buyout clause in Pique's new contract.
Barça will further announce the date of the actual signing in the coming days.
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Sergi now has a €40m release clause in his current contract and Barcelona want to increase it considerably after United, Chelsea and Juventus all considered luring him away from the Nou Camp in the summer.
The new contract also includes a 500m euro (£440m) buy-out clause.
Pique has helped the club win many titles, including three Champions League titles, six Spanish League titles, five Spanish Cup titles, five Spanish Super Cup titles, three European Super Cup titles and three Club World Cup titles according to Barcelona's official website.
Pique will continue at Barcelona until 2022.
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