Spain's Nico Williams eyes the ball prior the start of the Nations League final soccer match between Portugal and Spain at the Allianz Arena in Munich, Germany, June 8, 2025. AP
The deal, which extends the contract by eight years and swells the release clause by 50 percent, is "a resounding success" faced with "dizzying offers" for the 22-year-old, the club said in a statement.
"When you have to make decisions, for me what matters most is the heart. I am where I want to be, with my people, this is my home," Williams was quoted as saying in the statement.
Playing alongside his older brother Inaki Williams, Nico emerged through the Basque side's youth ranks to become a star performer, netting 31 goals over his five seasons with the first team.
His dynamic wing play helped the club win the 2024 Copa del Rey -- ending a 40-year drought in the competition -- and qualify for the 2025/26 Champions League.
Williams had attracted attention from European giants, with press reports linking him to Barcelona and Arsenal.
Williams has also become a regular for Spain and was named player of the match as La Roja defeated England to win the Euro 2024 final.
Find more details on group standings, match schedules, and competition statistics
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