The deal, according to the report, will begin after the 2014 season and run through 2021. It will pay Pedroia an average of around $14 million per season. He is currently playing on a six-year, $40.5 million contract that runs through next season.
Pedroia, who will turn 30 on Aug. 17, will be 38 years old in the final year of this new deal. He is batting .308 with six homers, 57 RBIs and an .807 OPS.
The Red Sox first made a formal offer to Pedroia and his New York-based agents, Sam and Seth Levinson, over the All-Star break in New York, a major league source told ESPNBoston.com.
Last month, general manager Ben Cherington talked about the club's desire to extend Pedroia, who has played in all but one of the team's first 100 games this season despite tearing the ulnar collateral ligament in his left thumb on Opening Day while sliding headfirst into first base against the Yankees -- with a six-run lead.
"Speaking generally about Dustin, he's certainly a guy we think very highly of, and he's a huge part of the organization, not just this team. He represents a lot of what we're all about," Cherington said.
"It's our sincere hope he's here for a long time; that's all I can say. We've got a good enough relationship with Dustin and his representatives that those conversations will happen over time. At the right time, we'll just have to see down the road what comes of it."