The 20-year-old playmaker is seen as a long-term replacement for Spain international Xavi.
Madrid: Barcelona's highly-regarded midfielder Thiago Alcantara has agreed to extend his contract by two years to June 2015, the European champions said on Wednesday.
The 20-year-old playmaker, who is of Brazilian origin and had sparked interest among Barca's rivals, is seen as a long-term replacement at the Catalan club for Spain international Xavi who turns 32 in January.
Thiago helped Spain to a 2-0 victory in Saturday's European under-21 championship final, scoring an audacious 40-metre free kick against Switzerland.
He made his debut for Barca in a league match at Real Mallorca in May 2010 but has played mainly for the club's B side the past two seasons.
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