Verratti, who turns 27 next week, has won six Ligue 1 titles with PSG since joining the club from Pescara in 2012.
“I think I’m coming to the most important moment of my career. I think at 27 you know a lot, you have more experience… I’m really happy to be able to continue here in Paris,” Verratti told the club’s website.
“Like I’ve said since day one, I feel really good here. I feel that I play for a team with big ambitions. That’s the key thing for me because I want to win as much as possible.”
“Here we have that possibility because we have a great team, we have a great coach,” he added. “We can do great things together.”
Verratti has won four French Cups and the French League Cup on five occasions with PSG, although the club have failed to progress beyond the Champions League quarter-finals under Qatari ownership.