Nico Williams has signed a new contract with Athletic Bilbao despite having been heavily linked with Barcelona.

As reported by Athletic Bilbao's official website, the winger's new deal will run until 2035.

Upon signing his new deal, Williams said: '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. Go Athletic!'

A product of Bilbao's youth system, the 22-year-old has made 167 senior appearances for the club and has scored 31 goals, while he has provided 30 assists.

He won the Copa Del Rey with Athletic in the 2023-24 campaign and is now set to be involved with the club in the Champions League next season.

Barcelona had reportedly agreed contractual terms with Williams but wanted to pay the transfer fee in instalments. 

Williams' release clause has now increased by more than 50 per cent. It previously stood at €58million (£50million).

Bayern Munich and Arsenal had also been linked with the Spain international, who helped his nation to win Euro 2024.

Had Williams joined Barcelona he would have linked up with his international colleague Lamine Yamal. 

Guarantees put into personal terms by his agent had reportedly affected his potential switch to Barcelona.

There were also concerns over whether Barcelona would have been able to register Williams as a player due to their financial difficulties.

Had they signed Williams it is likely that Barcelona would have been required to sell several players in order to register him.

Barcelona will now have to turn their attention elsewhere in their pursuit of a new winger.

Marcus Rashford, who is out of favour at United and spent the second half of last season on loan at Aston Villa, has previously been linked with the Catalan club.

Williams' brother Inaki is also still at Athletic and has made over 400 appearances for the club.