Chelsea captain John Terry has signed a new five-year contract which is reported to be worth £150,000 per week.
The defender was the subject of much transfer speculation in the summer, with claims of a £40m bid from Manchester City for the 28-year-old.
A statement on the official Chelsea website stated the club was "delighted" that Terry had signed the new deal.
It added that the move reaffirms the England skipper's desire to end his career at Stamford Bridge.
After prolonged rumours suggesting Terry was considering a move to Manchester City this summer, the centre-back eventually ended his silence by pledging his future to the club in July.
Terry was wanted by City boss Mark Hughes as a key part of the Manchester club's recent revolution that has seen them spend in excess of £120m on the likes of Emmanuel Adebayor, Carlos Tevez, Roque Santa Cruz and Gareth Barry.
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It was reported that City were willing to offer Terry £200,000 a week to sign for them.
City subsequently turned their attention to alternative defensive targets.
They signed Kolo Toure from Arsenal for £14m on 29 July and Terry's England colleague Joleon Lescott from Everton for £22m on 25 August.
Chelsea manager Carlo Ancelotti said in his first media conference after taking the reigns at the club that he would not consider selling Terry.
It was reported Terry wanted assurances from owner Roman Abramovich that the Londoners were still able to match his own ambitions before committing to the club.
So far this season, Terry has played every minute of Chelsea's 100% start to the season, which has seen them win four straight matches to top the Premier League along with Tottenham.
Terry has been with Chelsea since the age of 14 and has won two Premier League titles, four FA Cups, three League Cups and a Cup Winners Cup in the last 11 years, leading to his nickname of "Mr Chelsea".
He also led Chelsea to the Champions League final against Manchester United in 2008, although his missed penalty in the shoot-out after the teams had fought out a 1-1 extra time draw in Moscow allowed United to lift the European Cup instead.
Terry has made 276 appearances for Chelsea, scoring 17 goals and has been capped 54 times by England since his international debut in 2003.
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