The 27 year old has missed very few games for Rovers in the last five years, notching up more than 200 appearances in the process.
Chairman John Williams said of Pedersen's future at the club: "That's something we'll look at over the next couple of weeks.
"I'll have to sit down and talk to Sam (Allardyce) about Morten's situation, but I think all parties are willing to get something sorted."