The France international midfielder put pen to paper on a four-year contract extension on Wednesday, meaning he will stay at the Parc des Princes until 2018.
Matuidi had been linked with a move away from the Ligue 1 champions, with Premier League sides Manchester United, Manchester City and Arsenal all thought to be interested in a deal.
However, Matuidi has committed his immediate future to the Parisians and he is excited by the club's lofty ambitions.
Speaking to the club's official website, he said: "I was determined to continue the adventure with Paris Saint-Germain.
"The club's limitless ambition is unequalled in Europe. Together, we will continue to dream bigger."
PSG president Nasser Al-Khelaifi believes a "strong message" has been delivered to European footballs big guns with Matuidi's new deal.
"Blaise Matuidi wants to leave his mark on the history of Paris Saint-Germain," he commented.
"We are sending out a very strong message to France and the rest of Europe by resigning one of France's very best players. Together, we want to build one of the best clubs in the world.
PSG are currently in a strong position to retain the Ligue 1 title and sit five points clear of second-placed Monaco, while they also look certain to make the UEFA Champions League quarter-finals following a comprehensive 4-0 win over Bayer Leverkusen in the last 16 first leg last week.
