The midfielder has been rewarded for an impressive debut season at Parc des Princes by an extended contract that will have bumped his salary
The 20-year-old had been linked with a return to Serie A this summer following the departure of Italian coach Carlo Ancelotti to Real Madrid, who were also said to be chasing his signature.
However, the Italy international now looks set to stay at Parc des Princes, with PSG reported to have bumped his salary along with adding an extra year on to his contract, which now has five years left to run.
An official statement on les Parisiens' website read: "Paris Saint-Germain are very pleased to announce that Marco Verratti has extended his contract for another year. He is therefore bound to the club until June 2018.
"Arriving at Paris Saint-Germain in 2012, Marco Verratti has shown his desire to impress in his time with the club. The young Italy international has played 36 games, including nine in the Champions League last season.
"The extension shows the will of the Paris Saint-Germain to build a project for the future and to build one of the greatest teams in Europe."