The Italy midfielder, who joined PSG from Pescara in 2012, has put pen to paper on a one-year extension with the French capital club.
Verratti, 21, has previously been linked with a return to Italy, with Juventus touted as potential suitors for the diminutive schemer.
But, with his long-term future now apparently settled, Verratti insists his only focus is on adding to the five trophies he has already won with PSG.
He told the club's official website: "When I think about my career, I only see myself at Paris Saint-Germain. I want to continue winning trophies with this club, while continue to improve as a footballer alongside truly world-class players."
PSG president Nasser Al-Khelaifi added: "All of Europe wants Marco Verratti, and each year, he shows his desire to be a long-term part of the Paris Saint-Germain project.
"Marco is one of the most talented players of his generation. His presence in the squad shows the club's desire to prepare for the future and build one of the biggest clubs in Europe."
Verratti has made 88 appearances for PSG since moving to the Parc des Princes.
