There has been a host of speculation surrounding Kimmich's future this year, as his contract at Allianz Arena is due to expire in the summer of 2025, and a number of clubs have been linked with his services.
Real Madrid and Barcelona were believed to lead the interest in the 29-year-old, who had seemingly decided to leave Bayern on a free transfer at the end of his contract in search of pastures new.
However, according to Fichajes, the situation has now changed, with Kimmich set to pen fresh terms with the club.
The report claims that Vincent Kompany's arrival as head coach has had a huge impact on the situation, with the Belgian viewing Kimmich as a vital part of his plans moving forward, so a new long-term deal is now set to be signed.
Kimmich 'in line for new Bayern contract'
Kimmich has been a vital player for Bayern during the 2024-25 campaign, making nine appearances in all competitions, contributing two assists in the process.
The midfielder has not missed a single minute of football for Bayern this term, demonstrating his importance for Kompany, and a move away from Allianz Arena now appears unlikely.
Last month, Bayern CEO Herbert Hainer said that he wants Kimmich to finish his career at the club.
"I would be delighted if he ended his career at FC Bayern. But not next year, but in many, many years after that," Hainer told Sky Deutschland.
"I believe that Joshua feels comfortable in Munich, everything else will be determined by the talks with Max Eberl and Christoph Freund.
"I congratulated Joshua immediately (on new role as Germany captain) and he replied within two minutes. That shows how much I appreciate him and what I think of him. He absolutely deserves it. He's someone who always leads the way, who always wants to give his best."
Bayern chief wants Kimmich to finish his career at the club
The midfielder has won eight Bundesliga titles and the Champions League during his career in Munich, and there is also believed to be strong Premier League interest in his services.
Manchester United, Manchester City, Arsenal and Liverpool have all been linked with the German, and it had been thought that he was looking for a fresh challenge at this stage of his career.
Bayern are believed to be willing to hand Kimmich a pay rise to remain at Allianz Arena, though, and it will seemingly not be long before an announcement on a new contract arrives from the German giants.
Kompany's side will be bidding to reclaim the Bundesliga title from Bayer Leverkusen this season, and they currently sit top of the division, level on 14 points with second-placed RB Leipzig.