The pair began their partnership in 1989 and will continue to work together for the next eight years, with the club believing the deal represents their status as a major force
The Ligue 1 club signed their first deal with the sporting manufacturer during the 1989-90 campaign, with the partnership seeing all kits, training wear and sportswear designed by the American firm.
PSG president Nasser Al Khelaifi said: "We are very proud that Nike, a highly-demanding and selective partner and the number one sport company in the world, has chose to continue the adventure with us.
"This proves they believe in our ambitions. Paris Saint-Germain has now clearly become a member of the very exclusive club of major world teams."
To mark the announcement, special animations will be displayed during Sunday night's Ligue 1 clash between PSG and Lille at the Parc des Princes, with Nike highlighting les Parisiens as a global force to be reckoned with.
"We're delighted to confirm the continuation of our partnership with Paris Saint-Germain," said Nike brand president Trevor Edwards.
"We began working with the club almost 23 years ago and there has never been a greater potential for the partnership than there is today.
"Paris Saint-Germain is one of the most ambitious, forward thinking and innovative sports teams in sport and we are looking forward to the future."