“I am very happy because FC Bayern are one of the best clubs in the world and I know that we still have a lot of opportunities and big goals,” the France winger said in a statement.
The 25-year-old joined Bayern from Juventus in 2015, initially on a two-year loan, and went on to score the winning goal in the 2020 Champions League final.
Coman has made 217 appearances for Bayern, scoring 46 goals and creating 52 more, winning the Bundesliga title in each of his six seasons in Munich.
“My best years as a footballer are still ahead of me and my biggest goal is to win the Champions League again,” he added.
Coman was sidelined by back-to-back ankle injuries in 2018.
He was one of nine players to test positive for Covid-19 who all missed last Friday’s 2-1 home defeat by Moenchengladbach.
However, Coman has since tested negative and returned to training.