The Mexican has spent the last four years with the Indian outfit, playing a key role as they have established their place as the fourth best team in this year's Constructors' Championship race.
Perez has rarely failed to finish among the points this term and he had been linked with a move away from Force India, but he has now ended that speculation by signing a new deal and he will once again team-up with Esteban Ocon next year.
The 27-year-old confirmed it was always his intention to remain with Force India and he is hoping to enjoy more success with the team for the duration of his contract.
"Staying with Sahara Force India was always my priority," said Perez. "It's a team that has allowed me to show my talents as a driver and I feel very happy here.
"I'm proud of everything we have already achieved together and I think there is more to come. The team has done an amazing job this year to develop the car and establish our position as the fourth best team in Formula 1."
It remains to be seen whether Perez will remain with Force India beyond 2018, as it is likely positions at Ferrari, Mercedes and Red Bull will open up at that time.