The 20-year-old made his Eredivisie debut in April 2012, and became a regular member of the first team during the 2013-14 campaign.
Kongolo made 17 appearances in the Dutch top flight last term and his form convinced Louis van Gaal to include him in Netherlands' squad for the World Cup, where he made a solitary appearance against Chile in the group stage.
He has now signed a deal that will see him stay at Feyenoord until 2017.
"I am very confident that I can develop at Feyenoord," he told the club's official website.
"I do not have a lot of games in the first team and in the league to my name.
"Therefore, I think it's better for my development if I play in the first team at Feyenoord. I think it's better for my development."
Feyenoord technical director Martin van Geel added: "Terence is a fantastic player with lots of potential. In my eyes, he takes a wise decision to stay longer with Feyenoord.
"We are confident that Terence could become an even more important player for Feyenoord."
