The new four-year deal will keep the 25-year-old at Leeds until the summer of 2015. There is also the option of an additional year included in the winger’s contract.
“I’m delighted. Leeds is the club that gave me an opportunity and I’m happy here,” Nunez told the club’s official website.
“It’s all about concentrating on my football and working hard to get into the team.
“Obviously getting into the Premier League is the goal of everybody here. We certainly have enough good players to do that.”