Dier's loan move from Tottenham to Bayern Munich has been made permanent after he completed the required number of appearances mentioned in his contract, the German Bundesliga club said on Saturday.
The 30-year-old England midfielder joined Bayern on loan in January in a deal to the end of the season after spending a decade with Spurs, reuniting with former team-mate Harry Kane.
Bayern said Dier's contract has been extended until June 2025 with Max Eberl, Bayern's board member for sport, saying the 30-year-old England international provided "valuable support" in defence.
Dier has played seven times for Bayern in the Bundesliga, including five starts.
"I'm happy in Munich. Now my future is sorted and I can focus on playing well for the club and trying to help the club to win games, win competitions, even though it's been a difficult period for us," Dier said.
Having won the Bundesliga 11 years in a row, Bayern are second in the standings this season, seven points behind unbeaten Bayer Leverkusen who have a game in hand.
Bayern host Lazio on Tuesday in the Champions League last 16 with the German side trailing 1-0 from the first leg.
