The 30-year-old Germany number one, who joined Bayern from Schalke 04 five years ago, has enjoyed a trophy-laden spell in Bavaria that includes a Champions League triumph in 2013 as part of a treble-winning season.
"We are still in the running for all the titles and have the chance to win a lot this year," Neuer said in a statement. "This is our short-term goal but also in the future."
Neuer, who won the 2014 World Cup with Germany in Brazil, has also won the Bundesliga three times and the German Cup twice in his five years at Bayern.
The Bavarians can clinch a record fourth consecutive Bundesliga title if results go their way on Saturday.
Chasing another treble this season under Spaniard Pep Guardiola, Bayern are also through to the German Cup final and face Atletico Madrid in the Champions League last four next week.
"He is the best goalkeeper in the world and we are completely satisfied with his performances," Bayern CEO Karl-Heinz Rummenigge said. "You can count on Manuel and we are happy that he decided to sign a new deal."
Bayern, have already extended deals for several other players to 2012, including Jerome Boateng, Thomas Mueller and David Alaba.
"We have now tied all key players on long-term contracts to Bayern Munich. Fans should have no worries about the future," Rummenigge added.
(Reporting by Karolos Grohmann; Editing by John O'Brien)
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