The Seagulls' player of the year has extended his stay at the Amex until June 2022.
"We are delighted that Pascal has agreed a new contract with the club. He has enjoyed an excellent first season with us in the Premier League, and we are really pleased with the impact he has made," Brighton manager Chris Hughton told the club's official website.
"He settled very quickly and became an integral member of the team. He won the club's Player of the Season award, which was particularly impressive in his first season in England."
The German playmaker featured in all 38 of Brighton's Premier League matches last term, scoring seven goals and contributing eight assists.