With the Serie A champions in financial turmoil following their title win last term, Martinez was heavily linked with a move to North London as a means of balancing the books.
However, with Romelu Lukaku completing a £97.5m return to Chelsea, Inter were able to retain the Argentine's services as they seek to extend his contract beyond 2023.
According to The Mirror, Martinez's new deal with the Nerazzurri will not include a buyout clause, allowing Inter Milan to play hardball in any future negotiations.
The 24-year-old is supposedly set to commit his future to the club until the summer of 2025, where his wages will rise to €6m (£5.1m) per season without bonuses included.
Martinez already boasts three goals from three Serie A games in the 2020-21 season, including the opener in his side's 6-1 thrashing of Bologna on Saturday. body check tags ::