The 27-year-old midfielder has proved his worth to the team this season, having spent last term on loan at Heerenveen.
PSV coach Guus Hiddink has been suitably impressed to hand the midfielder a deal which ties him to the club until the summer of 2007.
The club expect to reach a similar agreement with Wilfred Bouma in the coming weeks, while Arvid Smit and Michael Lamey have been told they can return to PSV from their respective loan spells at Groningen and Utrecht.
Smit is relishing the prospect of proving himself at the Philips Stadion.
"I am motivated to be successful at PSV," Smit told the club's website. "I will do anything to be of value to the squad.
"I am looking forward to it. I can't wait to be a PSV player."
