The Catalan giants have confirmed blossoming midfielder Alcantara will pen a long-term extension and they have inserted a €90 million buy-out clause into his new deal
The move comes just days after the Spain Under-21 international said he had no desire to leave Camp Nou.
His original contract was set to expire in 2013, but Pep Guardiola's men have added another two years onto it as he earns an improved deal following a good season.
A statement on Barcelona's official website reads:
"FC Barcelona have reached an accord with Thiago Alcantara to improve and extend his contract with the club for another two seasons until June 30, 2015.
"The recissionary clause of the contract will be €90 million."
Barcelona appear to have moved quickly to secure the services of their midfielder for the long-term following speculative reports Chelsea, Villarreal, Roma, Arsenal and Manchester United were among clubs interested in him.
Earlier this month his father, 1994 World Cup winner Mazinho, told Goal.com his son was happy at Barcelona, and was good enough to fight for a place in the first team at the Champions League winners.