Real Sociedad have announced that Mikel Oyarzabal has signed a new contract with the club, effectively ending speculation over a move to Athletic Bilbao.
A report in Spain on Friday claimed that the 19-year-old was close to accepting a move to Real's Basque rivals after Athletic agreed to match his EUR40million release clause.
However, Oyarzabal has now committed his future to Anoeta by agreeing to an improved six-year deal.
"Real Sociedad have reached an agreement with the player Mikel Oyarzabal to extend his contract until June 30, 2022," a club statement confirmed.
Oyarzabal enjoyed a breakthrough campaign in San Sebastian last season, scoring six times in 22 LaLiga appearances.
He earned a first senior cap for Spain as a substitute during the 3-1 friendly victory over Bosnia-Herzegovina in May.