The Senegalese player had already entered the final six months of his previous contract with the club. It was set to expire at the end of June this year.
Club chairman Dr Khoza confirmed to City Press that Sarr has put pen to paper, and will remain at the club beyond June 2017.
Late last year, the 30-year-old was linked with a possible move away from the club.
Egyptian giants Al Ahly were believed to be keen on his services for the upcoming season, but they will now have to buy him out of his current contract if they are still interested.
There were also reports that he could be joining an unnamed Turkish club, but that again proved to be just a rumour.
Sarr can now focus on cementing his place in the starting line-up and help Pirates win as many matches as possible in the second half of the season.
The Buccaneers will be away to title contenders Bidvest Wits on the 3rd of February 2017 at the Ellis Park Stadium.