The 31-year-old, who joined PSG from AC Milan in July 2012, scored a league-high 30 goals last season to help the club win their first French title since 1994.
The former Barcelona, Ajax and Juventus hitman said after penning his new deal at the Parc des Princes: "I don't see a more ambitious club in Europe than Paris Saint-Germain.
"My wish is that Paris Saint-Germain is my last big club. This club is like me: the dream is never big enough."
PSG president Nasser Al-Khelaifi added: "The desire of Zlatan Ibrahimovic, one of the best players in the world, to leave a long and lasting legacy at Paris Saint-Germain is a very strong sign.
"Together, we share the same ambition, to take the club to the summits of the European game."