Ter Stegen, 25, has claimed the number one jersey at Barcelona since signing from Borussia Moenchengladbach for 12 million euros (10.43 million pounds) in 2014, seeing off competition from Chilean Claudio Bravo and Dutchman Jasper Cillessen.
Ter Stegen had to make do with playing in the Champions League and King's Cup in his first two seasons at Barca as Bravo was chosen for league games and the German threatened to leave at the end of his second season unless he was made the undisputed number one.
He got his wish when Bravo signed for Manchester City in August 2016 and played 46 games during the last campaign. However, he sat out most of the team's King's Cup games, with Cillessen chosen in Saturday's 3-1 win over Alaves in the final.
Ter Stegen will sign the new deal, which contains a buy-out clause of 180 million euros ($201.3 million) on Tuesday, following team mates Ivan Rakitic, Neymar and Luis Suarez in tying down his future to the club.
Barca are expected to announce a new contract for their all-time top scorer and talisman Lionel Messi later in the summer, with the five-times world player of the year expected to be made the highest paid player in Europe.
(Reporting by Richard Martin, editing by Pritha Sarkar)
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