The 24-year-old sat down with Barcelona president Josep Maria Bartomeu to put pen to paper on an agreement that keeps him at the club until 2021.
His buyout clause was set at £171m on his original deal but now rises to £180m in the first year, £200m in the second and £225m for the last three years.
With the deal’s completion Barcelona hope they have finally managed to ward off interest from Paris Saint-Germain and the Premier League.
Neymar, who missed a penalty and scored on Wednesday in the 4-0 win over Manchester City, played his 150th game for the club in that victory.
His return of 90 goals plus two leagues and two Spanish Cups and a Champions League have made him a huge on-the-field success despite the off-the-field problems the club have faced because of his original transfer from Santos.
Neymar was paid £4.5m in net salary when he first joined although Barcelona were accused of using a £36m payment to his parents company N&N as ‘disguised wages’. This season his salary was understood to stand at £8.2m net but the new deal will take him to around £15.9m net per season, rising to a potential £22.5m with bonuses.
Barcelona coach Luis Enrique said on Friday:
‘It’s great news. It shows the level he is at and and how he has improved since his arrival. It’s also great news because it shows he is happy here with his team-mates. He is already one of the best in the world without doubt.’
Barcelona must now turn their attention to the best in the world. Leo Messi’s current deal runs out in 2018 and will be the next player to commit his future to the club.
NEYMAR’S BARCA HONOURS
La Liga: 2014–15, 2015–16
Copa del Rey: 2014–15, 2015–16
Spanish Super Cup: 2013
Champions League: 2014–15
FIFA Club World Cup: 2015