"I've had a very high opinion of this club since 2012 when I played here with Montpellier in the Champions League," Stambouli told the club's website.
"Coach Markus Weinzierl convinced me of the sporting project in a phone call and I want to contribute to this success with my performances," he added. "I think the Bundesliga is the best league for me."
The former France Under-21 international joined PSG from Tottenham Hotspur in 2015 after making 12 league appearances in 11 months at White Hart Lane.
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(Reporting by Ed Dove, editing by Ed Osmond)
