The new deal will keep the 23-year-old at the club until 2012.
“I have every opportunity to continue to develop here,” he told the club’s official website.
“I am happy that the club have shown confidence in me and I am looking forward to continuing to wear the Hoffenheim shirt.”
Salihovic has been linked with Bayer Leverkusen, Borussia Dortmund and Hertha Berlin in recent weeks.
