The Dutch boss was linked with an exit from the Catalan giants following their poor end to the 2020/21 campaign after falling short in the title race.
However, following key talks with club president Joan Laporta last month, he will lead the team again next season.
According to reports from Diario AS, La Blaugrana are now willing to extend his deal beyond June 2022, as a show of faith in the former defender.
The report has not indicated how long the extension will be at this stage with estimates hinting at a further two years up until the end of 2023/24.
Both Koeman and Laporta will now place their focus on securing the future of talisman Lionel Messi after the Argentinian international left the club on a free transfer last month.