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MADRID, Aug 27 (Reuters) - Spain striker David Villa has agreed an improved contract with Valencia which ties him to the club until 2014, the Primera Liga club said on Wednesday.
The 26-year-old, who was top scorer for the victorious Spain side at Euro 2008 with four goals, ended days of speculation over his future after an approach from Real Madrid.
"I have always worked with my agent to stay here and I was proud other clubs wanted to sign me," Villa told a news conference.
"Valencia have preferred to keep me rather than to cash in on the large amount of money that was being offered. I have to thank them for everything they have done for me and for the effort they have made."
Valencia president Vicente Soriano said there had been an offer from the Spanish champions for around 40 million euros, but said his aim was to build a competitive team and that they had rejected the offer.
The decision represented a second setback in one day for Real who also saw Villa's international team mate Santi Cazorla agree to extend his contract with Villarreal to 2014, after enquiries from them about his availability.
Real Madrid had made late moves for Villa and Cazorla as they seek a possible replacement for Brazil forward Robinho, who has stated his desire to take up an offer from Chelsea.
