The 22-year-old has put pen-to-paper on a new five-and-a-half-year deal which will keep him at St. James’ until the summer of 2021.
Perez arrived on Tyneside in June 2014 from his hometown team Tenerife, where he had risen through the ranks.
He quickly became an important part of the Magpies’ first-team squad and to date has scored 12 goals in 63 appearances in all competitions – five of which have come this season.
“It’s a special day for me, a big day for me,” said the Spanish under-21 international.
“The truth is I’m really happy here, so it’s a good thing for me – and I hope it’s the same for the Geordie family.
“Newcastle gave me everything and I’m really pleased to sign this new contract.”
Newcastle United head coach Steve McClaren added: “I am delighted that Ayoze has signed a new deal.
“He is a very good player with huge potential and someone we believe has a very big future at Newcastle United.
“We are building this Club for the long-term and Ayoze is a very important part of that.”