The Brazilian, who has made 34 appearances in all competitions this season, was due to be out of contract in 2016.
However, he has now committed to the Allianz Arena outfit for a further 12 months.
The news will add to the feel-good factor at Bayern, who are on the verge of clinching a 24th Bundesliga title.
"It was the best decision of my life to come to Bayern," Dante told the club's official website. "Everything here is good: the club, the team, the title wins, the mood.
"Therefore, I remain very happy to (be here until) at least 2017 in Munich.
"I am sure that we can still have a lot of fun and success with our team in the coming years."
Karl-Heinz Rummenigge, Bayern's CEO, declared his delight at tying Dante down to a longer deal.
"Dante was certainly one of our best transfers in the past few years," Rummenigge added. "He has developed into an important player in our team... on and off the field."
Dante joined Bayern from Bundesliga rivals Borussia Monchengladbach in 2012 for a reported fee of €4.7 million.
