Spain winger Nico Williams has signed a new 10-year contract with boyhood club Athletic Bilbao, banishing rumours of a proposed move to Barcelona.

The 22-year-old had been heavily linked with Barca, while German club Bayern Munich and English Premier League side Arsenal were also speculated to be interested in his services, even though there had been reservations over the cost of doing a deal.

His previous deal with Bilbao was scheduled to run out in 2027 but he has now extended his terms with them until 30 June, 2035. The Spanish club has said, that Williams' release clause, which is believed to have been €62m (Sh9.8 billion) has also increased by 50%.

"When decisions have to be made, for me, what weighs most is the heart. I'm where I want to be, with my people, this is my home," said Williams.

Williams has come through the ranks at Bilbao, where his older brother Inaki is also a player, and made his debut for the club aged 18 in April 2021.

He has scored 31 goals in 167 appearances for the club and helped them finish fourth in La Liga last season as they qualified for the 2025-26 Champions League.

Williams also helped Spain win Euro 2024, scoring in the 2-1 victory over England in the final.

The announcement comes after it was understood that Barcelona had agreed personal terms with the forward which led to Athletic fans erasing Nico Williams from a mural featuring him and Inaki.

It is also just over a week after Athletic said they had met with La Liga to find out about Barcelona's "ability to sign players" amid the Nou Camp club's financial issues.

The '1:1 rule' states that Barcelona can only spend as much as their income and accounts allow, with La Liga calculating a limit based on the club's expected income. Bilbao had insisted that Barcelona could not afford to pen a deal for Williams who has also been linked with English Premier League side Arsenal.