The centre-back has ended all speculation about his future at the Ligue 1 champions by inking a one-year extension to his previous deal until 2017
The centre-back was heavily linked with Barcelona earlier this summer as the Catalans were keen to strengthen their defence.
However, the 28-year-old has now ended all speculation about his future by inking a one-year extension to his previous deal, after PSG previously already told Barca that they had no intention to sell Silva.
"We are very proud to have extended with Thiago, an exemplary players both on and off the pitch," club president Nasser Al-Khelaifi said in a statement.
"He symbolises PSG's wish to build one of the most successful teams in Europe in the mean time."
The powerful defender joined Paris Saint-Germain from AC Milan in the summer of 2012 and has since developed into a key player at the Ligue 1 giants.
He made 22 league appearances for the Parisiens last term, helping them to their first Ligue 1 title since 1993-94 in the process.
Silva's renewal comes only days after PSG completed the contract renewal of Marco Verratti, with the Italy international signing a new and improved deal until 2018, too.