Perez, who is set for a fifth season with the Silverstone squad, had said earlier in the week that he had two options for next year.
Force India announced an unchanged line-up for 2018, hours before the Singapore Grand Prix.
"Staying with Sahara Force India was always my priority. It's a team that has allowed me to show my talent as a driver and I feel very happy here. I'm proud of everything we have already achieved together and I think there is more to come," said Perez.
Perez has won four out of the five podiums in the team's history. He is currently fourth in the driver standings with 58 points, three points ahead of teammate Ocon.
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Team principal Vijay Mallya said Perez has played an important role in Force India's progress which saw the team finishing an unprecedented fourth in 2016.
"Sergio has played an important role in our success story over the last few years. Since joining us in 2014, he has matured to become one of the quickest and most consistent drivers on the grid. His track record speaks for itself as the most successful Force India driver ever with four podiums," said Mallya.
Williams, Toro Rosso, McLaren and Sauber are yet to announce their driver line-up for the next season.