The Uruguay striker had long been linked with the likes of Juventus, Manchester City and Chelsea, but has instead committed himself to the Partenopei until 2017
The Uruguay international has long been the subject of transfer speculation, with Italian champions Juventus linked with a move for the player along with Premier League giants Manchester City and Chelsea.
However, he has now committed his future to the Partenopei after putting pen-to-paper on an improved deal which will keep him at the San Paolo until 2017.
Speaking to reporters shortly after confirmation of his new contract, Cavani revealed his decision to extend his stay with Napoli was based on both his love for the city, and belief that the side can challenge on all fronts.
"Staying in Naples is not a choice of money, although it is definitely important because [playing football] is a job, but this is also a choice of the heart," he told reporters.
"This is one of the most beautiful cities in the world, the warmth of the club's support is unique and makes you feel special.
"We took all of these factors, along with my family and my agents, into account, and collectively we decided to stay in this beautiful city.
"I always go on the pitch to win, to get the most out of every match. Since my arrival in Naples, I always tried to win a trophy.
"I think the Coppa Italia is the first step towards more important objectives. I cannot say that we will win the Scudetto, but I can say that we have a great team that will fight on all fronts."
Cavani scored in Napoli's 3-0 opening-day Serie A victory over Palermo last weekend, and will now be looking to further his account for the new season against Fiorentina on Sunday.