The striker had been heavily linked with a move away in the summer after spending the previous year on loan at Besiktas.
Newcastle were chasing the Cameroonian, while French club Marseille were also interested.
But Aboubakar has fought his way back into the first-team at Porto and he is the club's top scorer this season with eight goals.
The 25-year-old has now been rewarded for his fine start to the current campaign with a new deal until 2021.
It is reported that Aboubakar's release clause has stayed at £50m on the new terms agreed.