The Belgium international is currently nursing a broken foot, but will ply his trade at the Allianz Arena for another year after renewing his contract
The defender's deal was set to expire at the end of the season, amid talk that the Bavarians were ready to dispense of the 34-year-old's services.
However, the club have chosen to retain the veteran centre-back, who they believe will be an important player next season.
"We are delighted Daniel will continue playing for Bayern next season," sporting director Christian Nerlinger told reporters.
"We know exactly what we have with him. With his experience and qualities he will continue being an important part of our squad."
Van Buyten is currently recovering from a broken foot, but according to team doctor Hans-Wilhelm Muller-Wohlfahrt, he should be ready in time for the Champions League final against Chelsea on May 19.
"Daniel is making progress. Yes, the final is possible," he revealed to TZ.
Should he be pronounced fit, Van Buyten could be a key player in the final, with regular starter Holger Badstuber ruled out due to suspension.