Designed by US architect Corgan, in association with Chinese partner IPPR, the complex is expected to boast 100 boarding gates when fully operational.
The company was one of six which submitted concept bids as part of a design competition held by the Shanghai Airport Authority (SAA).
Expansion of PVG is part of a plan by the SAA to make it the premier international hub airport in Asia, and to keep pace with growth of China’s largest city and financial capital.
The budget for the project has yet to be announced for the development.
David Lind, chairman of Corgan, says: “We are thrilled to be working with the Shanghai Airport Authority. This project reflects Corgan's growth internationally and the quality of our work, especially in the aviation industry."
There are currently two terminals at PVG with 28 and 42 gates respectively, but SAA aims to welcome 80 million passengers to PVG and handle 4.7 million tons of cargo annually by 2020, to make it Asia's primary aviation hub.
Jonathan Massey, principal for Corgan's aviation design studio, says: “The Shanghai Airport Authority has a bold plan for Pudong Airport's future so we've conceived a bold design concept that truly balances form and function.
"The result is a building that creates a sense of excitement for passengers while expanding commerce for the SAA and its tenants."
Corgan’s concept will focus on maximising passenger flow and experience in an efficiently organised building that is designed to be ‘beautiful yet efficient in both its operation and maintenance’ and Massey added: "Our mission is to take the passenger experience to a higher level."
Another important aspect of the design of the terminal satellite concourse is that it is built so it can grow and change with the aviation industry and city.
"Shanghai is the business leader of China, with a population today of some 24 million people. Its airport should reflect that role and position in the global economy," Massey says.