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Neymar is to remain with Barcelona until June 2021.
The Brazilian had been linked with a move away from the Catalan club this summer, with Paris Saint-Germain and Manchester United interested in signing him, but he has committed his future to Barcelona by signing a new three-year extension.
His previous contract, which included a €200 million release clause, had been due to expire in 2018 but his new deal will see him remain at the Nou Camp until 2021.
Confirming the news on Twitter, Barcelona wrote: "@NeymarJr will continue at @FCBarcelona until 2021 #Neymar2021"
The new release clause has been set at €200 million but this will increase to €222m next season before climbing to €250m for the remainder of his deal.
Neymar has scored 55 goals in 93 La Liga games since joining from Santos in 2013.