The Algeria international was linked with other teams ahead of the January transfer window including Liverpool and Paris Saint-Germain, but the midfielder insists he was determined to remain at the Mestalla.
Feghouli delayed leaving his La Liga side to meet up with his country's Africa Cup of Nations squad to try to resolve the situation, and is now looking forward to continuing with "one of the best clubs in the world."
"It was always clear, at no time did I want to leave Valencia," told reporters at a press conference on Friday.
"They're one of the best clubs in the world. This league fits perfectly with my style, and I have everything I need to grow here in Valencia.
"There was interest from other clubs, but my concern has always been to make it work with Valencia. I go on to the field, and the rest, I leave to my agent."
Los Che's sporting director Braulio Vazquez was also pleased with the attacking midfielder's contract having been extended, and hailed his importance to the side over the coming years.
"It's a very important renewal on all levels," the Valencia chief said. "He's grown a lot with us, his progression is clear.
"On a sporting level he is one of the most important people at the club for the next decade. His termination clause is very high."