The agreement follows months of back-and-forth between the two parties. Laimer had reportedly pushed for his salary to rise from between €8million and €9million to somewhere between €12million and €15million, a figure that initially proved too high for Bayern's hierarchy to accept.
Eventually, negotiations settled on a more moderate pay increase, with honorary president Uli Hoeness said to have personally intervened in the talks to help push the deal over the line.
The 29-year-old joined Bayern Munich on a free transfer from RB Leipzig in the summer of 2023 and spent a considerable period as a squad player before becoming a regular starter last season under head coach Vincent Kompany. He featured in every key fixture, primarily operating at full-back, and contributed three goals and 12 assists across 51 competitive appearances.
Bayern sporting director Max Eberl explained the club's delight at tying down one of their most consistent performers.
"We are pleased that Konny is continuing his journey at FC Bayern," Eberl said. "Reliability at the highest level has his name on it, and with his abilities and his character he is an important part of the team.
"He is a player who inspires and motivates others, and does that every single day."
Laimer echoed that sentiment, pointing to how settled he has felt in Bavaria since his arrival three years ago.
"For me, it is something very special to play in the shirt of FC Bayern," Laimer said. "I have often emphasised how happy I am in Munich and that it is huge fun to play football in this team.
"I have felt that from day one here. I can help the team in many positions and want to continue giving everything for FC Bayern every single second."
The extension ends any lingering uncertainty over Laimer's future just weeks after he played every minute for Austria at the World Cup, and it ensures Bayern retain one of the squad's most versatile and hard-working figures as they prepare for the new Bundesliga campaign.
Since arriving in Munich, Laimer has won the Bundesliga on multiple occasions along with domestic cup honours, establishing himself as a trusted presence regardless of where he is asked to play.
His willingness to fill in across several positions, from midfield to full-back, has made him particularly valuable to a Bayern squad that has leaned heavily on tactical flexibility under Kompany, and the club will view locking down his future as a significant piece of business completed before the new season begins.