Tello who’s current deal is due to run out in June 2013, has made 16 appearances for Barcelona’s first team scoring three goals, despite still having a youth team contract.
It was believed that Liverpool could attempt to sign the soon to be out of contract forward for a cut-price fee with Milan also reported to be interested, but it now seems the 21-year-old will extend his stay at the Nou Camp.
A statement on Barcelona’s website confirmed that negotiations with Tello’s agent Josep Maria Orobitg, had been resolved.
“FC Barcelona wishes to communicate that an agreement has been reached with the player Cristian Tello to extend his contract until June 30 2016,” the statement said. “His release clause has been fixed at €10 million.
“The contract will be signed by the player on Monday December 17 at the FC Barcelona offices.”
Liverpool will now likely end their pursuit of the player and look at other alternatives as manager Brendan Rodgers aims to add new faces to his squad.
After suffering a difficult start to the campaign, the Reds have began to turn the corner and young players such as 18-year-old Raheem Sterling have been heavily relied upon throughout the season.
Rodgers will hope to ease the pressure on some of his inexperienced players by bringing in reinforcements in January, with Daniel Sturridge from Chelsea and Thomas Ince from Blackpool both looking likely to happen.