The present invention relates generally to semiconductor devices and more particularly, to a structure and method of forming a contact silicide on a source-drain (S-D) region of a field effect transistor (FET) having extensions by using an undercut etch and a salicide process. A method of forming a contact silicide extension is disclosed. The method may include: forming an undercut region below a dielectric layer and above a source-drain region, the undercut region located directly below a bottom of a contact trench and extending below the dielectric layer to a gate spacer formed on a sidewall of a gate stack; and forming a contact silicide in the undercut region, the contact silicide in direct contact with the source-drain region.