Brazilian striker Neymar has signed a five-year contract extension which includes a buy out clause of up to 250 million euros ($277.5 dollars), the Spanish club said Friday.
The deal will keep the 24-year-old international, widely regarded as one of the finest talents in world football, at Barcelona until June 30, 2021, the club said in a statement.
“The player’s buy out clause has been fixed at 200 million euros for the first year of his contract, 222 million for the second and 250 million for the remaining three years,” the statement added.
The previous buy out clause was 190 million euros.
The club said it will formally present the new deal in Barcelona on July 15, before Neymar joins up with the Brazilian national side for the Olympic Games.
Neymar was already under contract until 2018 with Barcelona, having transferred in 2013 from Brazil’s Santos.
That transfer deal has haunted the club because of alleged hidden payments that have sparked legal action.
The prolific Brazil striker has played brilliantly for the Catalan club as part of a much feared attacking trident alongside Lionel Messi and Luis Suarez.
Speculation had mounted around whether or not Neymar would extend his stay at the Camp Nou or make another lucrative move.
Paris Saint-Germain, Real Madrid, Manchester United and Manchester City had been named as possible suitors.
“I am very happy to continue living this dream. Long live Barca and long live Catalonia!” Neymar wrote on Twitter on Thursday after his agents announced the player would sign a new five-year contract.
Neymar has been a huge success for Barca on the pitch but a judicial nightmare off it.
He helped them win the Spanish league last season for the second year in a row, narrowly beating their fierce rivals Real Madrid.
But he has been investigated in Brazil and Spain over his transfer from Santos.
Barcelona agreed on June 13 to pay a 5.5-million-euro ($6.2 million) fine over the transfer in a deal with prosecutors that sees the club avoid trial on tax evasion charges.
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