Areola appears to have won the battle to be Thomas Tuchel's first choice goalkeeper, starting nine Ligue 1 matches this term despite the arrival of veteran Gianluigi Buffon.
The 25-year-old has come through the ranks at PSG and the Paris-born goalkeeper is thrilled to have committed his future to his boyhood club.
"It was very important for me to continue my career and my progress at Paris Saint-Germain," Areola told PSG's website. "This club is not only my trainer, it is also the club of my heart. I grew up here and I discovered the very high level.
"My club gives me this chance to pursue very high ambitions, alongside outstanding team-mates. With the continued support of our supporters, we still have wonderful story pages to write together. I believe very strongly in my club and the opportunity to live unforgettable moments."
PSG extended the contract of Areola's France team-mate Presnel Kimpembe in August and president Nasser Al-Khelaifi hailed the goalkeeper's rise as a coup for the club's academy.
Thomas Tuchel's side have been linked with a move for Manchester United goalkeeper David De Gea, but it appears they view Areola as their long-term goalkeeper as it stands.
"It is with great joy and pride that we are extending Alphonse Areola's contract," he said. "Alphonse is one of the most beautiful symbols of the excellence of our training centre.
"And we appreciate, as well as our supporters, the loyalty that he expresses towards his club through his choice to join in the long term.
"Since his first steps at the club, Alphonse has shown a fantastic desire to make progress with his coaches and his most experienced teammates.
"His extension is a strong signal of the trust we place and will continue to place in the players we train."