The midfielder has spent the whole of his career with the Catalan giants, bu there were rumours that PSG were interested in tempting him away from his boyhood team.
'Marca' reports that as a result of that interest, Barcelona will offer the player a new contract, but that it will not extend the length of his stay.
Instead, Busquets will receive a pay rise in line with other senior players that have recently penned new deals including Lionel Messi and Luis Suarez.
The new deal will also see his release clause raised to an incredible £450 million, to make sure that PSG end their interest in the player.