Berlin: Spain midfielder Thiago Alcantara has extended his contract with Bayern Munich until 2019, with German daily Bild reporting he will make up to nine million euros ($10.1m) per season.
The salary would make the 24-year-old one of Bayern's highest earners as the German champions plan their team around the attacking midfielder, who is one of head coach Pep Guardiola's favourite players.
"We are pleased that Thiago has decided to stay at FC Bayern in the long-term," wrote chairman Karl-Heinz Rummenigge on the club's website on Thursday.
"He's young and an important player for the future of the club."
Despite having joined Bayern in July 2013, back-to-back knee injuries in 2014 have restricted Thiago, who only made his comeback last April, to just 41 appearances for Bayern.
Meanwhile, there is no end in sight to France winger Franck Ribery's ankle injury misery.
The 32-year-old has not played since limping out of Bayern's Champions League last 16 win over Shakhtar Donetsk in March.
"You can't imagine how annoying it is," Ribery fumed in German daily Bild.
"I am really doing everything I am told, but the pain just won't go away."
In Ribery's absence, Brazil's Douglas Costa has set up two goals from the left wing in Bayern's first two games of the new Bundesliga season and scored on his league debut.
Having spent last season at Augsburg, Danish midfielder Pierre-Emile Hojbjerg, 20, is set for another loan period, this time with Bayer Leverkusen, who are reported to be looking at the defensive midfielder as cover for injured Chile international Charles Aranguiz.
Bayern are said to have ruled out a selling the 20-year-old.
Brazil defender Dante is reported to be on his way out of the club with VfL Wolfsburg amongst the favourites to sign the 31-year-old.
The centre-back was part of the Bayern squad that won the 2013 treble of Champions League, Bundesliga and German Cup, but has found himself used mainly on the bench this season with Guardiola preferring a three-man defence.
As a replacement, Bayern are reported to be looking at France Under-21 defender Aymeric Laporte from Athletic Bilbao, who has a release clause in his contract.
