Real Madrid have announced that Isco has signed a new five-year contract, keeping him at the Santiago Bernabeu until June 2022.
The 25-year-old is set to earn €6million per season and has a staggering €700m release clause, according to reports in Spain.
A number of teams, including Barcelona and Bayern Munich, were linked with a move for the Spain international as he entered the final year of his deal.
However, an impressive run of form in the first team towards the end of 2016-17 saw the playmaker cement his place in the plans of head coach Zinedine Zidane and earn a renewal.
Isco has been an ever present in Madrid's team this season, playing in all three LaLiga games and its 3-0 win over APOEL in the Champions League on Wednesday.
He has also been in fine form for Spain, scoring three goals in recent wins over Italy and Liechtenstein.
The 25-year-old, who has won 10 major trophies in four years since joining Madrid from Malaga in 20-13, is set to address the media at the Santiago Bernabeu on Friday.
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