The top scorer of the European Championships in summer will now remain at the club until the end of the 2013-2014 season.

Valencia acted quickly to assure the future of their key striker in the face of interest from Real Madrid, who had the 26-year-old at the top of their list of possible replacement for winger Robson Da Souza Robinho.

Last season saw Villa score 18 league goals in 28 appearances and he has a total of 58 goals in 101 appearances for the club.

"This is a very happy day for me. I have had a lot of things in my head over the last month and didn't know how things were going to work out. I am very grateful to Valencia for the gesture. I never took any steps toward leaving the club and I always aimed to stay here," Villa told the club website.

His decision is yet another blow to Real Madrid, who had already seen how another transfer target Santi Cazorla had also rejected a move to the Spanish capital earlier in the day.