The 26-year-old Spain international has been a valuable member of the side that faces Juventus in the Champions League final on Saturday as they look to complete a treble with the La Liga title and King's Cup already in the bag.
"Barcelona have arrived at an agreement with Jordi Alba for the renewal of his contract until the 30th of June, 2020," a club statement read.
"His buyout clause will be 150 million euros ($164.48 million). He will sign the contract in the coming days."
Alba was released by the Barca youth academy but went on to prove himself at Valencia before he was brought back in 2012.
He has since thrived in Barca's quick-passing system with his pace and ability to attack down the left wing. He had two years to run on his existing deal.
(Editing by John O'Brien)
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