The 28-year-old was an essential part of the Raiders' offense last season as he rushed for 271 yards and caught 52 passes for 496 receiving yards, as he was voted to the Pro Bowl.
Reece told the club's official website: "It's another step to my goal being a Raider for life.
"I plan on playing for as long as God will allow me to. If it's for a lot longer, I want it all to be with the Raiders."
Oakland face the Jacksonville Jaguars on Sunday.