"I am very happy. It's what I wanted and the club too and so I feel huge satisfaction," Suarez told Barca TV, saying the deal showed the "recognition of the club" to his contribution since signing from Liverpool in 2014.
"Every game with Barcelona is special," added the 29-year-old.
The Uruguay international striker's new deal features a 200 million-euro release clause.
Suarez has scored 97 goals in just 116 appearances since arriving from Anfield.
Barca president Josep Maria Bartomeu was among several of the club's top brass as Suarez put pen to paper.
The Catalan club was keen to tie down their center forward who forms part of an explosive attacking triumvirate with Lionel Messi and Neymar.
The club has already persuaded Neymar to sign a new deal also through to 2011 and are working on an extension for Messi.