Davies, 19, joined Bayern from Vancouver Whitecaps in 2018 and has become an important player for the Bundesliga champions.
“I am very happy,” he told the club’s website. “FC Bayern is one of the best clubs in the world, and for me it’s a dream come true to play here. I felt happy from day one.
— FC Bayern English (@FCBayernEN) April 20, 2020
“I want to win as many titles as possible with this club. The mentality of always wanting to win everything is in FC Bayern’s DNA.”
Davies helped Bayern win the Bundesliga and DFB-Pokal in his debut campaign at the Allianz Arena, scoring one goal and providing eight assists last season.
Bayern CEO Karl-Heinz Rummenigge said: “Alphonso has developed very well at FC Bayern and has earned this contract extension with his impressive performances.
“We are happy that he will remain with FC Bayern in the long term. He delights our fans not only with the way he plays, but also with the way he is off the pitch.”
Davies told ESPN that Bayern are capable of winning the Champions League once football restarts after the coronavirus pandemic.