Pearson, who was capped 10 times for Scotland, re-joined the club where he started his career in January and been vital in the Steelmen’s recent upturn in form.
There was interest in the player from both home and abroad, but Pearson told the Motherwell website that he was keen to repay the faith shown in him by manager Ian Baraclough and has committed his future to the summer of 2017.
Pearson said: “I am really pleased we have got this all done and dusted so early; I’m delighted to being staying at Motherwell.
“I’ve really enjoyed working under the manager and with this group of players. Our first priority is to try and stay in the Premiership then rebuild again for next year.
Now Pearson has vowed to help the Fir Park side secure their Scottish Premiership future.
Baraclough’s side are in the relegation play-off spot, four points ahead of bottom side St Mirren – who host leaders Celtic on Friday night – and three behind Ross County with three games before the split.
Ahead of the trip to Kilmarnock on Saturday, Pearson stressed the importance of Premiership survival.
He said: “I am delighted to commit myself to another two years but obviously the focus is making sure Motherwell stay in the Scottish Premiership.
“That is the aim for everyone at the club and hopefully we can do that over the coming weeks. We want to stay in the top flight; we don’t want to drop down to the Championship. We think we have enough quality within the squad to do that.
“It is going to be difficult. Ross County are on a good run, St Mirren are there. But we can only look after ourselves and make sure we are prepared properly for each game, which we have done, and confidence is high after the Hamilton win in the last game.”
Pearson said he had no real qualms about returning to Fir Park in January for his second spell with the club.
The 31-year old started his career at Fir Park 15 years ago before leaving for Celtic. He has also played for Derby County, Stoke, Bristol City and in the Indian Super League with Kerala Blasters.
He said: “You are always anxious going back to a club for a second spell but it is about confidence in your own ability.
“If you feel you are an improved player then you shouldn’t have any doubts going back anywhere.
“I am enjoying football. I plan on playing as long as I possibly can. If I can play for another four or five years that would be great.
“There was a big turnaround of players in January but we are starting to see the new players settle down.
“I want to help the club stay in the Premiership – that is the short-term goal and then obviously we will look at things after that.”
Manager Baraclough was delighted to extend the services of Pearson, who was his first signing after taking over from Stuart McCall in December.
He said: “I am delighted Stephen has signed this extended deal as he has been a huge influence both on and off the park. It is a big boost for everybody. Since day one I knew he was the type of character I wanted to bring in.
“He was my first signing and to extend that deal for another two years is massive and testament to what he has seen in this club. I know he had another couple of other clubs trailing him.
“His signing will, I hope, give everyone a boost and it’s a real indication of our intention and determination to not only finish this season strongly, but with one eye on building for season 2015/16 and beyond.
“We are in positive discussions with other members of the squad and will look to talk with more as the season reaches its conclusion.”