The new deal will keep the 28-year-old at Sunderland until the summer of 2015.
Sessegnon has been a hit for Sunderland since joining the club from Paris St Germain in January 2011.
The new deal is subject to Sessegnon being granted an extension to his current work permit.
Sessegnon has been linked with the likes of Arsenal and Liverpool as well as a return to PSG in recent months.
