The deal hasn't been confirmed by the Red Sox or Pedroia yet, and a major league source told Edes that Pedroia must still pass a physical on Wednesday.
The contract, the source said, begins in 2015 and runs through 2021. It will pay Pedroia an average of around $14 million per season. Pedroia is currently playing on a six-year, $40.5 million contract that runs through 2014.
"It's not official. I don't think about any of it," Pedroia said of the pending contract. "I enjoy coming every day to play, especially this park, this city. This is my life."
On playing with potentially one team for his entire career, he said: "That was my biggest thing. I grew up a Giants fan. The guys you looked up to, you wanted them to be with your team the whole time they were playing. My boys were born here. Every offseason I talk to [son] Dylan and say, 'You ready to go back to Boston?' It's home, you know."
Pedroia's new deal comes just months before Yankees second baseman Robinson Cano is set to become a free agent. He's expected to command a contract of six to eight years and close to $200 million in a deal that could make Pedroia's new contract look like a bargain.
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 this season.
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."
Information from ESPNBoston.com's Gordon Edes and ESPNNewYork.com was used in this report.