The versatile defender will ink a contract extension with the Bundesliga leaders later this week as he continues his recovery from a serious knee injury
The 23-year-old's previous deal was due to expire in June 2014, but he has now ended all speculation about his future by agreeing a three-year extension, which he will sign on Friday.
Badstuber joined the Bayern youth academy from Stuttgart at the age of 13, and made his official first team debut against Hoffenheim in 2009-10.
The centre-back, who can also feature on the left, has since developed into an important first-team member and has made well over 100 official appearances for the Bavarians.
The defender is currently recovering from a knee injury, and is expected to be unavailable for the remainder of the season.