The 25-year-old enjoyed a superb campaign with Los Rojiblancos, having helped them secure the Europa League trophy.
And the young Spaniard is delighted to have committed his future to Atletico having returned to the Estadio Vicente Calderon from Mallorca in 2010.
"My dream since I was small has always been to play and succeed at Atletico Madrid, so I'm very happy to continue at the club," said Suarez.
"Although I had to leave the club a few seasons ago, I always had it in my head that I would return to the Vicente Calderon to earn myself a place in this great team and I'm delighted that the club have confidence in me and given me the opportunity to continue here for many years."
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