The 49-year-old signed an 18-month contract through until June 2022 with the option of an extra year when he joined.
But that deal has now been extended until the following June in a summer which has seen interest in him from former club Tottenham.
Pochettino - whose staff have also been granted extensions lasting the same period of time - told the club's official website: "I'm really very happy, for myself and also for my staff
"It's very important for us to feel the confidence of the club and we will give our maximum so that the supporters are proud of Paris Saint-Germain.
"That's why we will try and reach our objectives all together, as one. Twenty years ago I was captain of this club and today I am the coach… It's a dream come true."
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