MADRID, July 4 (Xinhua) -- Athletic Bilbao has ended speculation over Nico Williams' future by announcing that the Spain international forward has signed an eight-year contract extension with the club.

The new deal, which also increases the 22-year-old's release clause by 50 percent to around 90 million euros (106 million U.S. dollars), has effectively ended rumors that Williams was on the verge of signing for FC Barcelona.

While the new contract is good news for Athletic, it is a huge disappointment for Barcelona, after the club had made strong efforts to try to sign the winger for the second consecutive summer.

The club is still struggling to meet La Liga's financial regulations which would enable it to make new signings and include them in its first-team squad.

Barcelona had made no secret of the club's wish to sign the younger of the Williams brothers, with the club's sporting director Deco saying in a recent interview that the player wanted to join the club.

However, while the rumor mill continued to spin, Athletic was working quietly on a new deal with the forward - his second in just 12 months - to keep him in Bilbao.

Williams scored 11 goals in 45 appearances for Athletic last season as the club reached the semifinals of the Europa League, while also finishing fourth in La Liga to book a place in next season's Champions League.

Nico and his elder brother Inaki have become symbols of the Basque club and have featured in a TV documentary about them and their family.

"When you have to take decisions, my heart is what has the most influence. This is where I want to be, this is my home. Aupa Athletic," commented Nico in the video accompanying the news of his contract. ■