The Swede, whose existing deal was due to expire in the summer of 2015, is now set to stay at the Parc des Princes until near his 35th birthday.
“I don’t see a more ambitious club in Europe than Paris Saint-Germain,” the former Ajax, Juventus, Inter Milan, Barcelona and AC Milan striker said in a statement released by PSG.
“My wish is that Paris Saint-Germain is my last big club. This club is like me: the dream is never big enough.”
“I think I’ll finish my career here in Paris,” he added.
“From here, I want to continue working to be the best and with this one-year contract, I’ll continue pushing things to the maximum. Today, Paris is clearly the big European club.”
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PSG’s president Nasser Al-Khelaifi was also pleased with the contract extension.
“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,” he said in a statement.
“Together, we share the same ambition, to take the Club to the summits of the European game.”
Ibrahimovic scored 30 goals and was named France’s player of the year as PSG won the Ligue 1 title last season.