The 19-year-old was previously thought to be in a tug-of-war involving Barcelona and Real Madrid, but he has negotiated a new deal with the Copa Libertadores holders. The contract duration, which currently runs until 2015, is not affected, but the Brazil international will receive a pay rise as well as an increase in the buy-out clause.
The striker's agent Wagner Ribeiro has confirmed the agreement and said his client was delighted at having the chance to stay on at Santos.
"Neymar is happy to be able to remain with Santos until at least 2014, after that he will decide where to go," Ribeiro told Lance on Wednesday, assuring the youngster's continuity in Vila Belmiro until after the World Cup in Brazil.
There had been speculation that the deal was partly financed by the Banco do Brasil, who had previously contacted Neymar with a view to mounting an advertising campaign involving the star. Santos president Luiz Alfaro Ribeiro de Oliveira denied any such links, however, as he presented the youngster in a press conference officially confirming the new contract.
Oliveira declined to release specific details about Neymar's new terms, although the president did reveal that his estimated €45m buy-out clause has increased.
The player's father, meanwhile, accompanying the chief in Wednesday's press conference, insisted that his son would not be receiving a substantial pay increase, as Neymar was already very satisfied with his current salary.
Barcelona and Real Madrid had been linked with the youngster heavily in the summer, but Santos had announced they were looking to tie the player down to a new deal in September.
How do you stay up with football when on the move? With http://m.goal.com – your best source for mobile coverage of the beautiful game.