Porto's prolific Colombia international striker Falcao has agreed to extend his contract by two seasons until 2015.
Premier League outfit Chelsea have been heavily linked with the 25-year-old marksman following their appointment of ex-Porto boss Andre Villas-Boas over the summer.
Falcao's previous deal had a €30million (£26.2m) release clause attached, however, that has now been increased to €45m (£39.4m).
The striker is coming off the back of a season to remember having plundered 38 goals last term, helping Porto claim a treble of Portuguese Premier League, Portuguese Cup and Europa League.
Falcao became the top all-time scorer in a single Uefa club competition, scoring 17 goals in the Europa League campaign to break a record previously held by Germany's Jurgen Klinsmann.
He joined the Portuguese giants from Argentina's River Plate in 2009 and has scored an incredible 73 goals in 85 games.