The 21-year-old winger has been linked with some of Europe’s biggest clubs after a breakout 2018-19 Eredivisie campaign, which saw him score 14 goals and add 12 assists for the Dutch runners-up.
"This is the right decision,” Bergwijn said in a statement. “I had other options, but in the end everything has to fit well for me, but also for PSV. The result is that I'm staying here, with a lot of joy and confidence."
Bergwijn has now signed four different contracts with PSV having joined their youth academy in 2011 from Ajax, and the winger says that shows he still has more left to accomplish with the club.
"That means I'm feeling well here and I'm not done learning,” Bergwijn said of his extension. “I get to play for trophies here and feel very at home in Eindhoven."
Previously, Bergwijn had told Goal that he considered Manchester United a “nice club” but was in no rush to depart PSV.
Bergwijn has already captured three Eredivisie crowns with PSV, though they lost their title to rivals Ajax last season.
Ajax were among the teams linked to the winger this summer, having lost him from their youth system eight years prior.
But it was Bayern who seemed to be the most likely suitor, with Bergwijn’s agent Fulco van Kooperen claiming in July his client was willing to wait for the Bundesliga champions.
However, Van Kooperen warned Bergwijn was not willing to wait indefinitely and with reports Bayern failed to make a bid for the winger, he has elected instead to sign a new deal.
Meanwhile Bayern are near a deal to take Barcelona attacker Philippe Coutinho on loan, with the La Liga champions having confirmed an agreement, though the move is not yet complete.
The Bundesliga champions have also secured Ivan Perisic from Inter on loan for the season with the option to buy.