Babel signs Ajax extension

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Ajax starlet Ryan Babel has ended speculation over his future by signing a new deal at the club.

Babel had been linked with a possible move to Arsenal and Newcastle during last month's transfer window.

However, Ajax have been able to persuade Babel to sign a new two-year deal to keep him at the Amsterdam ArenA.

The 20-year-old broke into the Ajax side in 2004 and he has established himself as a key player at the club.

Babel is the second Ajax player to extend his stay at the club with Kenneth Vermeer inking a two-year extension to keep him in Amsterdam until 2010.

Vermeer made his debut for Ajax this season in the Uefa Cup against IK Start.