Joao Pedro joined Watford in 2020 from his boyhood club Fluminense
Chelsea striker Joao Pedro has signed a new contract running until 2034.
The Brazil international, 24, joined from Brighton last summer in a deal worth an initial £55m, plus £5m in add-ons.
He scored 20 goals in all competitions in his first season at the club, having played a key role in their Club World Cup success.
"I am very happy to sign a new contract with Chelsea," Joao Pedro said.
"I always dreamed of playing for a big club, and it means a lot to me to give my long-term commitment to this club. Chelsea has a long tradition of winning and it has big ambitions for the future.
"Everyone is very excited for this season. We know we can achieve a lot of things, we have a great team, we have a coach who wants to win and has won already."
When he signed for the club, his original contract was announced as running until 2033.
However, that deal actually ran until 2032 with an option for one further year.
Chelsea typically include those club options when stating the length of a player's contract in official announcements.
Therefore, Joao Pedro's new deal has been announced him as being under contract until 2034, despite the deal itself running until 2032 with a further two-year option.
In reality, Chelsea have extended his contract on improved terms rather than reducing it.
The strategy is not only designed to protect their investment – Barcelona have been keen on the striker – but it also serves as a reward for performance.
Chelsea operate a strict wage structure, but are keen to incentivise strong performances by allowing players to move up wage bands.
They did so with Cole Palmer after his impressive form and also with Nicolas Jackson, who moved from an entry-level salary to a more established wage bracket after joining from Villarreal.