The promising midfielder has committed his future to the Bundesliga club, where he feels that he can best develop.
The United States international has enjoyed a breakthrough campaign at Signal Iduna Park, making 19 appearances in all competitions and scoring twice.
His season has been littered with links to Liverpool, but Dortmund bosses have long maintained that they intended to tie the 18-year-old to fresh terms.
And they have done just that, with Pulisic signing a new deal that will keep him at Dortmund until 2020.
"I still have a lot to learn," Pulisic said in a statement. "Here at Dortmund are the best conditions for me.
"Here I have the chance to play in front of 80,000 fans. We have the best fans in the world, it could not be better."
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