Pep Guardiola decides Bayern Munich future despite Chelsea link
Guardiola's contract expires in June and he has been linked with Chelsea and Manchester City.
The Spaniard has told Bayern what he will do and is set to make it public following Saturday's game at Hannover.
Meanwhile, Muller, Jerome Boateng, Javi Martinez and Xabi Alonso have all extended their Bayern deals.
Forward Muller, 26, defender Boateng, 27, and midfielder Martinez, 27, have committed to the Bundesliga champions until 2021, with 34-year-old midfielder Alonso's deal taking him to 2017.
Bayern chairman Karl-Heinz Rummenigge said the club had received offers for 26-year-old Muller, who was reportedly a target for Manchester United in the summer.
"I come from the area, I've been here 15 years and of course I'm delighted," Muller told Bayern's television channel.
"I am proud and happy that I have extended my contract."