Neuer has won seven German titles, five DFB Cups and the Champions League since joining the club from Schalke in 2011.

The Bayern captain, 34, says he "feels at home in Bavaria" and is looking to the "future with great optimism".

"In the weeks of the lockdown, I didn't want to make a decision because nobody knew whether Bundesliga football would continue at all," he said.

"Now that this has been resolved, I look to the future with great optimism. I feel very comfortable in Bavaria.

"Bayern is, and remains, one of the top European football addresses."

Neuer kept a clean sheet as Bayern beat Union Berlin in their first game since the league's return during the coronavirus pandemic.

He has also won 92 caps for Germany, as well as playing a starring role in the World Cup victory of 2014.

The Bayern CEO Karl-Heinz Rummenigge said the club were "very happy and satisfied" with the goalkeeper's decision to stay.

"Manuel is the best goalkeeper in the world and our captain," he said.

Neuer will be joined by Alexander Nubel, 23, next season, with the Schalke goalkeeper joining the club on a free transfer this summer.

The ex-Germany Under-21 international has agreed a five-year contract with the defending Bundesliga champions.