The left-back has opted to extend his stay with the Bundesliga giants and has inked a new deal that will keep him at the club for four more years
The defender's previous deal was due to expire in the summer of 2013, and a number of clubs were closely monitoring Contento's situation.
However, the 22-year-old has moved to end all speculation about his future by signing a three-year extension to his existing contract.
Contento is a product of the Bayern youth academy, and made his official first team debut in February 2010. The former Germany Under-20 starlet has made 47 competitive appearances for Bayern to date.
The defender faces stiff competition from Austria international David Alaba for the position of left-back at the Bavarian giants.