Although a release clause could have allowed either party to end the agreement this summer, both the player and the club have opted to continue their partnership.
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The 36-year-old joined Paris FC from Bologna in February and registered two goals and two assists in 13 appearances during the second half of the campaign.
While he is unlikely to be a guaranteed starter next season as the club continues its search for a new centre-forward, Immobile remains highly valued for his leadership and vast experience.
A former Italy international with 57 caps and 17 goals, Immobile has played more than 700 professional matches and enjoyed successful spells with Lazio, Borussia Dortmund, Sevilla and Besiktas during his distinguished career.