Former Liverpool midfielder Xabi Alonso has ended speculation about a Premier League return by extending his deal at Real Madrid.

The World Cup and European Championship-winner was in the final year of his deal prompting speculation of a move to former club Liverpool or a chance to reunite with Jose Mourinho at Chelsea.

But the 32-year-old has now signed a two-year contract with an option for a third season.

Real team-mate and former Liverpool defender Alvaro Arbeloa was clearly delighted by the news...

Enhorabuena @XabiAlonso!! Más contento no puedo estar, amigo.. "Two more years" pic.twitter.com/mmb3fRdDBE

— Álvaro Arbeloa (@aarbeloa17) January 8, 2014