Transfer reporter Fabrizio Romano both confirmed the deal is finalised. Neuer is expected to put pen to paper before Bayern Munich's final Bundesliga match on Saturday against 1. FC Köln.
The extension keeps Neuer at the club until June 2027 and comes with a reduced salary — understood to be down from around €20 million per season — reflecting both his age and Bayern's broader wage management.
Neuer joined Bayern from Schalke 04 in 2011 and has spent 15 seasons at the club. In that time he has won 11 Bundesliga titles, two Champions Leagues and six DFB Cups, widely regarded as the finest goalkeeper of his generation.
Bayern sporting director Christoph Freund said when the previous extension was confirmed: "Manuel Neuer has been setting the bar for goalkeeping for over a decade. He's our captain, a big figure at Bayern, and the team know they can always rely on him."
Jonas Urbig, 22, will continue as number two and is expected to receive more playing time than this season, with the deal structured partly around Neuer serving as a mentor to his designated long-term successor.
Debate over a return to the Germany national team for the 2026 World Cup has followed the announcement, but Neuer has repeatedly and clearly ruled out reversing his international retirement.
Sven Ulreich is also expected to remain as third choice, with his own extension thought to be close.