The Dutch Under-21 international came through the ranks at the Philips Stadion and he has already racked up over 100 league appearances for the club, scoring 33 goals.
Locadia's form has seen him consistently linked with a move away from PSV, but he has now brought an end to that speculation by signing a one-year contract extension.
A groin injury has limited Locadia's appearances so far this term, but he is delighted to have signed his new deal upon returning to full fitness, and he is now looking forward to continuing his development over the coming seasons.
The left winger told the club's official website: "We are here [talks regarding contract renewal] since the beginning of the season. When I got injured I wanted to prolong with PSV, but I’ve been waiting here [for developments].
"Now [the contract talks] have succeeded. I wanted to be fit. The next few years I hope to further develop. I would like to grow and especially to play a lot."