Cristian Tello is to sign a new contract tying him to Barcelona until June 2016, news that could disappoint reported suitors Liverpool and AC Milan.
Tello, 21, has made 16 appearances for Barcelona's first team this season, scoring three goals, despite still having a youth-team contract.
His current deal is due to run out in June 2013, which led to speculation that he could leave the Camp Nou on a cut-price deal, with both Liverpool and Milan linked with a January swoop for the winger.
A statement on Barcelona's website on Thursday confirmed that long-running negotiations with Tello's agent Josep Maria Orobitg, who also represents former Blaugrana boss Pep Guardiola, had been resolved.
"FC Barcelona wishes to communicate that an agreement has been reached with the player Cristian Tello to extend his contract until June 30 2016," the statement said. "His release clause has been fixed at €10 million.
"The contract will be signed by the player on Monday December 17 at the FC Barcelona offices."
Tello began his career at Barcelona's famed La Masia academy, playing there between 2002 and 2007 before moving on to Damm and then Espanyol to continue his development.
He returned to Camp Nou in 2010 and after a season with Barcelona B, made his first-team debut in November 2011 - scoring a brace in a Copa del Rey victory over Hospitalet.