The left-back's contract in the French capital was due to expire at the end of June and Arsenal, along with Barcelona, Chelsea and Everton, have all been linked with his signature.
However, just as it appeared that he would be leaving on a free transfer, PSG returned to contract negotiations and the 27-year-old has put pen to paper on a fresh deal which expires in 2024. It comes after the club parted ways with club legends Edinson Cavani and Thiago Silva.
"Paris Saint-Germain is delighted to announce that Layvin Kurzawa has signed a four year contract extension, with the 27-year-old French defender now tied to the capital club until 30 June 2024," a club statement reads.
The France international has spent the last five years at Parc des Prince since his move from Moncao.