Ter Stegen is approaching a decade at the Camp Nou, having joined from Borussia Monchengladbach in the summer of 2014.
The 31-year-old has made 379 appearances in total for Barcelona and his list of honours at the club include five La Liga titles, one UEFA Champions League, five Copa del Reys, one UEFA Super Cup and one FIFA Club World Cup.
Ter Stegen's previous contract was set to expire in the next two years.
A statement from the Spanish champions read: "Barcelona and the player Marc ter Stegen have reached an agreement to extend his contract until 30 June 2028. The buy out clause is set at 500 million euros.
"The event for the contract extension took place on Friday in the Spotify Camp Nou offices with president Joan Laporta, first vice president Rafa Yuste, economic vice president Eduard Romeu, board member Joan Soler and sporting director Anderson Luis de Souza 'Deco'."
Following the exits of Sergio Busquets and Jordi Alba at the end of last season, Ter Stegen has been promoted to the position of club vice captain.
Ter Stegen has won 34 caps for the Germany national team.
