The 25-year-old centre-back, whose contract was running out until 2015 but he will now remain with the Bavarians until 2018 summers.
The versatile defender, who joined Bayern Munich from Manchester City in 2011 has delighted with the new contract and stated, “Bayern are one of the biggest football clubs in the world.”
The Germany international has played 36 games for his country and he was included in final 23 man squad both for the 2010 World Cup and the UEFA Euro 2012.
Boateng has played 13 games for Bundesliga in this season so far and he proved himself as a capable of full back on either side.
Bayern Munich are unbeaten in this season and currently sits in the top position of the Bundesliga table with 41 points.
The Bavarians to play their next Bundesliga clash against Hamburger at Allianz Arena on 14 December, 14:30 GMT.