The Newcastle winger has scored two goals in 29 appearances for the Bantams this season, and boss Stuart McCall is delighted the 21-year-old has prolonged his spell at Valley Parade.
“He has kept improving as the season has gone on,” McCall told Bradford’s official website.
“We said back in the summer when we were trying to entice him back to the club that he would be given a good chance in the team, and he has certainly taken it.
“He has got stronger and stronger, and he is becoming an important part of our team.”
Pedro stepped off the bench to send Chelsea into the FA Cup semi-finals after they beat Leicester 2-1 at the King Power Stadium on Sunday evening.
RB Leipzig came from behind at the Red Bull Arena to end a run of four winless games and defeat Bundesliga leaders Bayern Munich 2-1 on Sunday.