The youth team player has been used frequently by Carlo Ancelotti this preseason, earning him a contract extension until June 2017.
Cheryshev, 22, spent last season with Real Madrid Castilla, scoring 11 goals and providing eight assists but has featured prominently in preseason for the first team, with coach Carlo Ancelotti playing him as a fullback.
Ancelotti has been impressed enough with Cheryshev to hand him a new deal and the Russia Under-21 international took to Twitter to express his excitement.
“I am very happy to have renewed with the best club in the world! Thank you very much for your support! I will give my best ever effort! #HalaMadrid.”
Cheryshev has featured at every level internationally for Russia, including U-15, U-17, U-18 and U-21, while earning one cap for the senior team in November 2012 in a 2-2 draw with the United States.
The Russian attacker follows Jese Rodriguez in extending his stay at Santiago Bernabeu.