Jose Maria Gimenez has signed a new deal with Atletico Madrid, extending his contract with the club until 2023.
His release clause, meanwhile, has risen from 65 million euros to 120 million euros as part of the extension.
Talks had been ongoing with CEO Miguel Angel Marin for weeks and Atletico finally confirmed on Wednesday that new terms had been agreed with Gimenez, whose previous contract expired in 2020.
"I am really happy and grateful for the confidence shown in me by the club," Gimenez, who joined Atleti in 2013 from Danubio when he was just 18, told the club's website.
"I have grown a lot since I joined the club. We have won titltes, we have consolidated ourselves among Europe's biggest clubs, we've moved into a spectacular stadium and it's an honour that they want me to stay."
Gimenez made 38 appearances in all competitions last season and despite suffering an injury late in the campaign he returned in time to make the side for the Europa League final, which Atletico won against Marseille.