The midfielder’s contract was due to expire in the summer, leading to speculation that he could leave for the Premier League, though PSG were always hopeful that the 26-year-old would renew his contract in the French capital and finally persuaded him to sign his contract last week.
Speaking to the club's official website, Matuidi said: "I was determined to continue the adventure with Paris Saint-Germain.
"The club's limitless ambition is unequalled in Europe. Together, we will continue to dream bigger."
PSG president Nasser Al-Khelaifi believes a "strong message" has been delivered to European footballs big guns with Matuidi's new deal.
"Blaise Matuidi wants to leave his mark on the history of Paris Saint-Germain," he commented.
"We are sending out a very strong message to France and the rest of Europe by resigning one of France's very best players. Together, we want to build one of the best clubs in the world."Matuidi arrived from Saint-Etienne in July 2011 for a fee of €7.5 million with a wage rise, and it is anticipated that left-back Maxwell will shortly follow suit and extend his deal with the reigning champions.
Despite the January arrival of Yohan Cabaye from Newcastle, the Toulouse-born midfielder has maintained his starting berth in Laurent Blanc’s starting XI, and already has made over 100 appearances in all competitions for the Parisian outfit.
PSG recently extended Thiago Motta's deal, while the futures of Jeremy Menez and Alex, whose contracts expire in June, are in doubt.