The versatile 23-year-old joined Bayern in 2015 and quickly rose to the international team and now has 25 caps. He has also successfully filled the right back position after the retirement of Philipp Lahm at Bayern.
"In the last two and a half years Joshua developed into a key pillar in our team," said Bayern CEO Karl-Heinz Rummenigge in a statement.
"Through his development in the right back position we have been able to move seamlessly into the future."
Kimmich, who won the Confederations Cup with Germany last year and will be part of their World Cup squad in June, has played 109 matches for Bayern in all competitions, scoring 13 goals.
The Bavarians are on track for a sixth successive Bundesliga title, having gone 20 points clear at the top.
They face Besiktas next week in their Champions League last-16 return leg. They beat the Turkish side 5-0 in the first leg.
(Reporting by Karolos Grohmann, editing by Pritha Sarkar)
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