The 23-year-old has flourished under Ross Lyon having played 43 of his 69 matches in the last two seasons after debuting back in 2009.
Pearce played 19 matches last year before an Achilles injury in round 23 required surgery and forced him out of the finals series.
Pearce has trained well over the summer and played impressively in Tuesday's intra-club game at Patersons Stadium.
Fremantle's general manager of player management Brad Lloyd said in a club statement that Pearce's performances over the past two years had made him a vital member of the Dockers' future.
"To see his continued development has been a credit to Clancee's commitment to his football and the effort he has put in," Lloyd said.
"He is an important member of the playing group and we look forward to seeing him continue to play his role for the club in the coming years."
