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Perry has been awarded a new deal despite prolonged injury battles over the past couple of seasons.
And he is set to mark the occasion by making his 200th Bath appearance in Saturday’s Zurich Premiership clash against Northampton.
Perry, 28, underwent intensive treatment with London-based sports specialist Mike Antoniades last year to cure persistent back and hamstring problems, and is now playing on a consistent basis.
"Matt has been a long-standing and loyal servant to this club, and we are naturally delighted that he has signed a new two-year contract," said Bath boss Jack Rowell.
"Importantly, Matt continues to develop as a player, and he has come to the fore at full-back this season since returning rehabilitated from injury."
Perry added: "The club’s support of me when I was going through the bad times with injuries was tremendous, and I am really enjoying my rugby at the moment.
"This club is my home and my passion. I never wanted to go anywhere else, and I am delighted to be signing a new contract with the club."
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