The 26-year-old has been linked with a big-money move elsewhere after a sensational first season in English football, but insists he is "living a dream" at the Liberty Stadium.
The 26-year-old has been a revelation in English football since arriving from Rayo Vallecano for 2.2 million pounds in the summer, scoring 16 goals in 28 appearances in all competitions for the Swans.
Such form had led to speculation of a big money move elsewhere in the summer, but on signing his new deal, Michu has revealed he has no thoughts of leaving the club.
“It was an easy decision for me,’’ he told the club's official website. “I am living a dream here at Swansea. I’m probably enjoying my football more than ever. It’s easy to play with this team and tonight I have the chance to reach the first final of my career.
“I’m really happy here in the city with the people, the club and the fans. Everyone has been so nice to me since I arrived. I think the club are happy with me because they have given me a new contract. I am certainly happy with the club. I’ve read and listened to all the speculation, but it doesn’t interest me, and that's why I've signed a new contract. I’m enjoying myself too much because the team always tries to play football. All I think about is the next game and helping Swansea be successful. This is my life.’’