Hoffenheim have handed Croatia-born Germany youth international Boris Vukcevic a new four-year deal.
The 20-year-old midfielder could have left the club on Bosman terms this summer and was being linked to Cologne.
But the youngster, who featured 27 times in the Bundesliga this term, scoring one goal, is now set to remain with Hoffenheim until June 2014.
He told the club's official website: "I am very happy over signing new terms with Hoffenheim.
"The decision of Ralf Rangnick to stay as manager of the club has also played a part in my decision to remain here.
"Under his guidance I managed to become a top-flight player. I think I have the best of chances to establish myself in the Bundesliga at Hoffenheim. This is why I am staying on."