The midfielder has extended his deal with the Portuguese champions until 2017 despite speculation suggesting he was set to leave for Manchester City in the summer
The 26-year-old was heavily linked with a late switch to Manchester City towards the end of the January transfer window and speculation was rife that he would opt to join Manuel Pellegrini's side when his contract expired at the end of the season.
The player's brother Joca Reges, meanwhile, claimed earlier this week that Fernando had already agreed to leave the club this summer.
Goal understands City have maintained their interest in the player, despite him no longer being available on a free in the summer.
But the Brazilian has now ended talk over his immediate future by extending his deal with Porto until 2017, with the club confirming the news via their official Twitter account.
Fernando began his career with Vila Nova before joining Porto in 2007, where he has won 12 major honours to date including four Primeira Liga titles and the 2010-11 Europa League.
He has three caps to his name for the Brazil Under-20 side but has yet to earn a senior cap for the Selecao.
Reports in Portugal claim Fernando's new deal includes a €30 million (£24.9m) buyout clause.