The talented 22-year-old has impressed at Kenilworth Road since being brought into the development squad back in November 2020, quickly training with the first team and making his Championship debut last season.
Pereira, who has played twice in the Premier League for Watford and also been at Major League Soccer side Atlanta United, then penned a pro deal in August last year, and caught the eye with his cameo during the Carabao Cup first round exit to Stevenage.
Despite looking an excellent prospect, the forward is yet to really show what he can do in a first team situation, as a disappointing loan spell at National League side Yeovil Town lasted one game, as he remained on the fringes of Town's second tier squad on his return.
Jones could loan out Muskwe and Mendes Gomes as he admits certain players would have left regardless of cup exit
Former Aston Villa and Crystal Palace youngster Williams elated to make his full Hatters debut in Carabao Cup
Jones still keen on pushing for defensive signing ahead of deadline day
Luton boss will make a late decision in the transfer window on whether to loan out Pereira
Hatters were aware of McAtee's shoulder injury before agreeing to sign Grimsby striker
Jones now believes his switch to Valley Parade, to join a Bantams side managed by former Morecambe boss Derek Adams, who are looking to win promotion back to League One this term, will be a real test of his inner desire, as he said: "It’s a really good move.
“We had a few enquiries about Dion, but we felt this was right.
"I know the work that Derek does with teams, with players, he did a fantastic job with Carlos (Mendes Gomes), so we’re hoping he can do the same with Dion.
“We felt it was really important that Dion goes out and plays game and learns the importance of not just being a wonderful technical player that can create, but one that has to put his body on the line for points.
"Bradford’s a big club, they get similar crowds to us in League Two.
"They’ve got a manager there that’s been promoted from the level and is expected to get them promoted again as that’s why he would have gone there, and that's why they would have employed him.
"So it's a real good loan and I spoke to Derek as I know him, we’ve come up against each other and it will be a good loan for both.”