The Argentina international, 29, has signed a two-year extension with the Giallorossi, committing his future to the club until June 2021.
Perotti joined Roma in January 2016, and has gone on to make 78 appearances to date in all competitions – scoring 17 goals.
“From the first game I have felt very at home here,” Perotti said. “I have enjoyed some of the best moments of my career here, and I hope to experience many more. I’m very happy.”
The right-footer has enjoyed a rich vein of form for the Giallorossi in recent months, scoring the winning goal against Genoa on the final day of last season to secure Roma’s place in this season’s Champions League.
On Tuesday, he scored the only goal of the game as the Giallorossi clinched their place in the last-16 of the competition.
“The bond I have with Diego is special,” sporting director Monchi said. “I had the fortune to observe his first steps in European football in person at Sevilla, and now I have the pleasure to assist him as he establishes himself as a valuable player at a great club like Roma.”
Perotti has represented Deportivo Moron, Sevilla, Boca Juniors, Genoa and Roma in his career to date.
After an almost seven-year absence, he recently earned a recall to the Argentina national team.
So far this season he has made 16 appearances in all competitions, scoring five goals.
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