Atletico hand Diego Costa new deal

Atletico Madrid have extended the contract of key forward Diego Costa by three years until June 2018.

The Brazil international has developed into one of the most exciting players in Europe over recent seasons and had been linked with a move to Liverpool.

It was reported in some quarters that the Reds had triggered a buy-out clause in Costa's contract, but any such talk can now be put to bed.

He has decided to remain with Atletico, staving off fears that he could follow Radamel Falcao - now with Monaco - out of the exit door.

"I am very happy with the deal, it is a very special moment," the 24-year-old told Atletico's official website.

"I am delighted with this agreement after fighting for a long time to win the respect and affection of the fans, my team-mates and people in the club."

Costa's reference to having to fight harks back to the amount of loan spells he has had away from the Vicente Calderon.

He was also sold to Valladolid in 2009 before returning a year later and finally establishing himself in Los Rojiblancos' first team.

"This was one of the priorities of the club and it is great news for everyone at Atletico," president Jose Luis Perez Caminero said.

"Diego Costa is one of the key pieces of the squad and following our policy of keeping together the block that has given us so much success in recent years, extending his contract was one of our goals."

The news comes on the back of the season-long signing of goalkeeper Daniel Aranzubia from Deportivo.

The 33-year-old passed a medical late last night and will now join Diego Simeone's squad, serving principally as back-up to Thibaut Courtois.

"I'm very happy to join a big team like Atletico Madrid. I've come to start working," he said on Atletico's official website.

"I am aware that Atletico Madrid has a great goalkeeper but I've come to do my job, to compete and try to help the team do well.

"I hope to work, do things right and help Atletico Madrid."

Aranzubia has made over 300 appearances in a career which has taken in Athletic Bilbao and Deportivo, while he has also played for the Spanish national side.