The young French man's contract was supposed to end on the 30th of June with PSG which will make him a free player in the transfer market.
The young have been attracted by Real Madrid and was already in talk with him about a move in this summer.
Despite that Real Madrid was Kylian Mbappe's boyhood dream, he signed another three more years with Paris which keeps many wondering how this happen.
The young man was convinced by the French President Emmanuel Macron who had a conversation with him to continue his career at PSG as he is an icon to the club and a role model to upcoming rising stars.
Mbappe is also set to receive a signing bonus of over €100 million (£85m/$106m) and club president Nasser Al-Khelaifi has promised him there will be wholesale changes at both boardrooms and squad level.
Sporting director Leonardo is among those set to exit the club, with Luis Campos in line to replace the Brazilian after successful spells in the same role at Monaco and Lille.
Mbappe's love for the club was also a key factor as he has a burning ambition to become their greatest-ever player and break Edinson Cavani's all-time scoring record, which he is now only 30 behind on 170 goals.