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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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.