Brighton & Hove Albion have announced that midfielder Moises Caicedo has signed a new long-term contract until 2027, with a club option to extend by a further year.
The news comes just two months after the 21-year-old expressed his desire to leave the club during the January transfer window amid interest from the likes of Arsenal and Chelsea.
Caicedo was the subject of two rejected bids from the Gunners worth £60m and £70m respectively, while Chelsea were understood to have seen a £55m offer turned down.
After learning of interest from Premier League leaders Arsenal, the Ecuador international released a statement on social media admitting that he wanted to "take up this magnificent opportunity."
However, Brighton insisted that the Caicedo would not be sold in January, and the midfielder was forced to stay away from first-team training until the transfer window slammed shut.
Caicedo's agent Manuel Sierra later criticised Brighton for denying the youngster his "dream" move to Arsenal.
"The offers were received, you see what is on the table and Moises says that he wants to go forward, that it is the dream of his whole life," Sierra told Marca90Ec as quoted by Ole. "That it is an opportunity that may not be repeated in life.
"In that statement he expresses his wish and his gratitude to the club because they gave him the chance to fulfil his dream of playing in the Premier League.
"We don't know what can happen tomorrow, maybe he trains and gets injured. We can't know what's going to happen."
Arsenal were believed to be planning to reignite their pursuit of Caicedo in the summer, but hopes of luring the midfielder to the Emirates Stadium have now suffered a major blow following the announcement of his new contract with the Seagulls.
Speaking to the club's official website on Caicedo's new deal, head coach Roberto De Zerbi said: "This is a fantastic news for the club, our fans, for me and most importantly for Moises.
"It will make us stronger as we move forward towards our targets on the pitch."
Under the tutelage of former boss Graham Potter, Caicedo joined Brighton from Ecuadorian outfit Independiente del Valle for just £4.5m in February 2021.
Following a brief loan stint with Belgium side Beerschot during the first half of the 2020-21 campaign, Caicedo returned to Brighton in January last year and has since developed into an influential player, making 35 appearances in all competitions.
Since making his Premier League debut, Brighton have won 15 out of 29 matches that the midfielder has played, and the youngster's performances have helped the Seagulls challenge for the European qualification spots this season.
De Zerbi's men currently sit eighth in the Premier League table, and a victory at home against West Ham United on Saturday could see them move to within three points of the top five.
