Reus, who only recently returned after an eight-month injury break, has been at Dortmund since 2012.
The attacking midfielder is battling to nail down a spot for Germany's World Cup squad after missing the previous edition through injury in the final warmup game.
The 28-year-old, who also missed out on Euro 2016, has been plagued by injuries throughout his career and won his first major title in 2017, lifting the German Cup.
"We are delighted that he decided to extend his contract early and for a long term despite past offers from the world's best clubs," said club CEO Hans-Joachim Watzke in a statement.
Dortmund are battling for a Champions League spot next season, sitting in third place in the Bundesliga, a point behind second-placed Schalke 04.
(Reporting by Karolos Grohmann; Editing by Christian Radnedge)
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