The Italian legend joined last summer and had been linked with a move away to Brazil to join Flamengo.
After agreeing the new deal del Piero said: “It was a big challenge for me, for my family, to take a long trip here and change everything in our life.
“My family and I have had a great time here. The weather, the city, everything is good. But first of all, I’m here to play.
“It’s a challenge. I work to win this challenge and I want to win again next year.”
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
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?