The new deal will keep the 28-year-old at Sunderland until the summer of 2015.
Sessegnon has been a hit for Sunderland since joining the club from Paris St Germain in January 2011.
The new deal is subject to Sessegnon being granted an extension to his current work permit.
Sessegnon has been linked with the likes of Arsenal and Liverpool as well as a return to PSG in recent months.
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As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?
Being an amiable guy is good for you and Jurgen Klopp is living proof.