The Swede wants to play the rest of his prime at Parc des Princes, while club president Nasser Al-Khelaifi hopes the player and PSG can conquer the Champions League together.
Ibrahimovic joined Les Parisiens ahead of the 2012-13 campaign on a three-year deal and notched more goals than anybody else in the French top tier as Carlo Ancelotti's side romped to the its first title in 19 years.
The Italian coach's departure for Real Madrid in June and the ensuing signing of Edinson Cavani led to rumors that the 31-year-old Ibrahimovic might depart this summer, but PSG held on to the highly rated striker, who has now revealed his intention to see out the peak of his career at Parc des Princes.
"I see no greater ambition in Europe than Paris Saint-Germain's," Ibrahimovic told the club's official website. "I really hope that Paris Saint-Germain are my last big club. This club are like me: just dreaming is never good enough."
PSG president Nasser Al-Khelaifi has shared his delight at Ibrahimovic committing for an added 12 months and insists that the club and Ibrahimovic can conquer the Champions League together.
"The new contract of Zlatan Ibrahimovic, one of the best players in the world, leaves a lasting mark on the history of the Paris Saint-Germain and is a very strong signal of intent," Al-Khelaifi said on Tuesday. "Together, we aim to lead the club to European summit."