The 18-year-old's current contract with the Catalan giants is due to expire next summer, although the club had the option of extending the agreement for another two years.
Pedri is currently one of the lowest-paid members of the squad, though, and Barcelona have been in discussions with the Spain international over a new and improved deal.
There were fears that the club's financial problems would prevent them from keeping hold of the highly-rated teenager on a long-term basis.
However, according to Italian journalist Fabrizio Romano, the two parties have now come to an agreement on a fresh deal, which will run until June 2026.
Romano claims that the new contract could be signed 'in the next hours', and the midfielder's release clause has allegedly been set at €1bn (£850m).
Pedri has scored four times and registered six assists in 56 appearances for Barcelona since joining the club from Las Palmas in June 2020.