The 24-year-old Mexican joined the UK-based outfit at the start of 2014 and enjoyed immediate success with a podium finish in only his third race.
He has gone on to score points in 11 races so far this year and heads into Sunday's season-ending Abu Dhabi Grand Prix 12th in the World Drivers' Championship standings.
"I am delighted that Checo [Perez] will continue with us," said team principal Vijay Mallya in a statement on Saturday.
"He's a true racer who has done a fantastic job for us this season.
"The whole team has been impressed with his speed and race craft, as well as his role away from the track. He has a very bright future in Formula One and we will do our utmost to give him the equipment to match his talent.
"I look forward to celebrating more strong results with Checo this year and in years to come, and I cannot wait for Checo's first home Grand Prix in Mexico in front of his huge following of passionate fans [in 2015]."
Perez added: "It's good to announce my plans. As soon as I joined Sahara Force India, I noticed the hunger and determination of everyone in the team, and I’m very proud to be part of that.
"I feel at home here and I'm fully committed. I'm enjoying my racing and we've already celebrated some special results together.
"It's important for me to establish myself in a team and have some continuity.
"The team have given me a competitive car this year and I believe we can continue to achieve great things together in the future."
Perez qualified 13th for Sunday's race, ahead of team-mate Nico Hulkenberg.
