Reus has struggled with injuries in recent seasons and only made his return from an eight-month knee absence in February. This is my home and BVB is my club.
The winger's old contract was due to expire in 2019 and the delay in prolonging it had reportedly drawn the attention of Tottenham and Liverpool.
"I am happy and proud to announce that I'll continue playing with Borussia". Since my childhood I dreamed in black and yellow to run and play for this club.
"The fact that I can renew my commitment to the association today is also a thank you to our fantastic fans, who have always stayed close to me".
Speaking at a press conference after putting pen to paper on a 5-year deal, a buoyant Reus said, "I have worn this shirt since 2012".
"The fact that BVB, with Hans-Joachim Watzke and Michael Zorc at the top, has repeatedly helped me in less than flawless times has also had a positive effect on my decision. At this point it is important to me to say thank you".
He captained the side in his comeback against Hamburg and has since scored in three consecutive games.
"We are delighted that he chose to extend his contract early and for a long term despite past offers from the world's best clubs", said club CEO Hans-Joachim Watzke in a statement.