The new deal will keep Gotze at Borussia Dortmund until the summer of 2016.
Gotze has recently been linked with the likes of Arsenal, Manchester United and Real Madrid.
“Everyone knows how comfortable I feel in Dortmund and I want to be part of this development,” Gotze told the club’s official website.
Dortmund’s general manager, Michael Zorc, added: “We are very happy that we do with Mario another common step in the future.”
