The new contract will keep the 21-year-old at Bayern Munich until the summer of 2018.
The Austrian joined Bayern Munich as a trainee in 2008 and has developed into a key player for the German side.
“David has undergone amazing development,” Bayern Munich chief executive Karl-Heinz Rummenigge said in a statement.
“He is already among Europe’s best and most successful full backs.”
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The start of the 2017-18 Premier League season is just around the corner and is shaping up to be one of the most competitive yet.
As always it is the so called “big clubs” that have splashed the most cash in the transfer window so far this summer. Manchester United or City? Arsenal or Tottenham? Who are the winners and losers of the transfer window so far?