The midfielder, who attracted brief interest from Arsenal in the transfer window, has no fears about competition from January signing Yohan Cabaye
As things stand, the midfielder - whom Arsenal were interested in signing during the winter transfer window - will be a free agent at the end of the season.
However, Matuidi, speaking after the reigning Ligue 1 champions' 2-0 win over Bordeaux on Friday, has now confirmed his desire to remain at the Parc des Princes.
"I am very happy here," the 26-year-old told Canal Plus. "The new contract will happen soon - do not worry."
January signing Yohan Cabaye came off the bench to make his debut for les Parisiens in Friday's hard-fought victory but Matuidi says he has no qualms about vying with for a midfielder spot with another top-class performer.
"Having competition is the sign of a great club and it will help the team," the France international added.
"Cabaye has had a very good debut. He quickly adapted. He is a very good player - a player who will be good for PSG and for Ligue 1."
Laurent Blanc's side lead the French top tier by six points over second-placed Monaco having played a game more, with Zlatan Ibrahimovic and Alex having netted second-half goals in the victory over Bordeaux.