Jonathan Dos Santos has put pen to paper on a new deal to keep him at Barcelona until 2015.
The fresh terms include a €30million buy-out clause and have ended any speculation that he could leave Camp Nou.
The Mexican forward was linked to a number of clubs, including Blackburn Rovers, as talks about a new deal appeared to stutter in recent weeks.
A number of high-profile youngsters have been allowed to leave Blaugrana in recent years, with Gai Assulin, Victor Vazquez and Oriel Romeu all having departed.
Dos Santos is highly-rated by coach Pep Guardiola and he was instrumental in ensuring that the 21-year-old remained at with the Catalan club.
The son of former Brazilian star Zizinho, Dos Santos joined his brother Giovani at Barca in 2002 and rose through the ranks before making his first-team debut last season.
Guardiola has carefully introduced the starlet into his side and that was evident as he replaced Thiago at half-time in Barca's 3-2 win over AC Milan on Tuesday evening.