Toljan was a Germany U21 international.
He became an U21 European Champion in 2017 and claimed a silver medal at the 2016 Olympic Games.
"The full-back, who has just turned 23, penned a contract tying him to the club until 30 June 2022," the club said in a statement.
"Jeremy can slot in on both the left and right of defence," said Sporting Director Michael Zorc was quoted as saying by the club website , adding: "He was one of the cornerstones of the side that secured the title for Germany at the U21 European Championship this summer."
Image: Borussia Dortmund Twitter page
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