The Peruvian striker rejoined the Bavarian outfit from Werder Bremen last summer, scoring 13 goals in all competitions and picking up three winners medals.
"I am 34 - I could think of nothing better than signing another contract at Bayern Munich," he told the club's official website.
"I am convinced we will have a good year together.
"What will happen in a year I can't say, but I feel very good and would like to play football for as long as possible."
Pizarro left Bayern to join Chelsea in 2007.