Diaz has been outstanding for Bayern in his first season in Germany, having made the move from Liverpool last summer.
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The Colombia attacker scored in this week's Champions League quarterfinal first-leg win at Real Madrid.
"Deciding to come to Bayern was the right choice," Diaz told ESPN.
"I'm really happy and I enjoy every game. I feel great , I'm in great shape, and that means I'm ready to help the team."
Diaz also praised the work of coach Vincent Kompany.
"We have a clear plan, we're a very united group, and that shows on the pitch," he added.