Brazilian midfield man Motta has become a regular in the Barca first-team under Frank Rijkaard, and the club thought it was important to sign him on a fresh deal this summer.
His contract was due to expire next summer but he has now signed on for a further three seasons to take him up until 2008, with his buy-out clause now rising to ‚é¼35 million.
The 21-year-old is thought to have a big future ahead of him at Camp Nou but his negotiations lasted well into the night in Barcelona.
In the end a deal which is highly incentive-based has been signed which will see him earn more on appearances and trophies won.
"It is logical that each party defended its interests," said Motta's agent Eduardo Ipiens.
"But the club wanted the player to stay and Motta's desire is to remain here for many years."
Barca are busy moulding a squad to build on their great end to last season, with UEFA Champions League football also back at Camp Nou.
After signing Ludovic Giuly and Julian Belletti, Barca are now on the verge of signing Sweden international marksman Henrik Larsson.
Talks with the former Celtic man have gone well and it is expected that the prolific Swede will be unveiled as a Barcelona player this week after a medical.
After banging in a hatful of goals over the years at Parkhead, Larsson always wanted to move to Spain and he will now have the chance to fire Barca to league and European glory.
