Draxler’s previous contract would have expired at the end of this season and had been linked with moves to Bayern Munich and Arsenal.
The 27-year-old Germany international joined PSG from Wolfsburg in January 2017 and has won three Ligue 1 titles, three Coupe de Frances and three Coupe de la Ligues with the Parisians.
"PSG is delighted to announce that Julian has signed a three-year contract extension until 30 June 2024," read an official statement on Draxler's extension.
Draxler has made 34 appearances in all competitions this season, scoring four goals.
The former Schalke 04 man joins the likes of Neymar, Juan Bernat, Keylor Navas and Angel Di Maria in signing a new contract at the Parc des Princes.
"The club's ambitions have become a reality," Draxler said after signing his extension.
"We played in the semifinal of the Champions League this season and in the final last season. We have progressed a lot, and even though we have been through highs and lows, the project is a very attractive one and I am happy to be able to continue here."
"It is a huge source of pride for me, I love this club and Paris as a city."
"It is great to be able to play with top players, and for a team like this one. I am very happy to have extended my contract here. I hope that we are going to continue to win lots of trophies in the next three seasons! We will give our all to win titles, as we do in every match."
Draxler, who was part of Germany’s 2014 World Cup winning squad, will be hoping to have his name included in Joachim Low’s plans for EURO 2020.
