The former France coach succeeded Carlo Ancelotti in the close-season after the Italian departed to take the vacant position at Real Madrid.
PSG have enjoyed a largely successful campaign under Blanc's stewardship and are on the brink of retaining the Ligue 1 title, as they hold a seven-point gap over second-placed Monaco with five matches remaining and also have a game in hand on Claudio Ranieri's men.
However, doubts were cast on Blanc's long-term future after PSG failed to better last season's run to the UEFA Champions League quarter-finals after being eliminated by Chelsea on away goals at the same stage.
President Nasser Al-Khelaifi has since rubbished rumours that the 48-year-old's tenure would be a brief one, however, and Blanc has now confirmed his intention to extend his stay at Parc des Princes.
Speaking to beIN Sports, he said: "I am very happy in Paris and I hope the contract extension will soon materialise."
PSG are celebrating after triumphing 2-1 over Lyon in Saturday's Coupe de la Ligue final.
