The Italy international, who joined the German giants last summer from Fiorentina, has been a target of AC Milan.
"Next year I will remain at Bayern," said Toni during the unveiling of his official website in Milan.
"I will be able to play in the Champions League and I hope I can help the team have a starring role in the competition.
"I am very happy in Munich."
Toni played a pivotal role in Bayern clinching the Bundesliga title this campaign after finishing as the league's top scorer with 24 goals in 31 appearances.
The 30-year-old, who is under contract with Bayern for another three seasons, admitted he would like to play in Italy again before he retires.
"I would like to return because I have scored 91 goals in Serie A and I would like to reach the 100-goal landmark before the end of my career," he said.
"But considering that I want to play for many years still, that will only happen later on."