Liverpool and Arsenal have been dealt a blow in their alleged pursuit of Arda Turan, after the Turkish winger signed a new contract with Atletico Madrid, reports turkish-football.com.
The 26-year-old will now earn €3million per-year after extending his stay at the Vicente Calderon until 2017, following an impressive campaign in 2012/13 where he scored six goals in 21 appearances.
Gunners boss Arsene Wenger has been credited with an interest in bringing the attacking midfielder to the Emirates Stadium in the past, so news of his new deal will come as a blow to the frugal Frenchman.
Turan's release clause at Atletico Madrid has now been increased from €24million to €40million - meaning Arsenal would have to spend close to the club-record fee paid to bring Mesut Ozil to north London from Real Madrid this summer.
Liverpool have also been mooted as admirers of the Turkey international, following a series of standout performances for Diego Simeone's side over the past two seasons, catching the eye of Anfield manager Brendan Rodgers.
Turan joined Los Rojiblancos from Galatasaray in a €12million deal in 2011, and has gone on to establish himself as an integral part of the Spanish side's first-team.
"I am delighted to have signed a contract extension with Atletico Madrid," he said in a statement. "I feel like I'm part of a family here."
The playmaker was on the scoresheet for Atletico in last night's 3-1 victory over Zenit St Petersburg in the Champions League, and will be hoping to carry his good form on for the rest of the season.