Luka Modric has signed a one-year contract extension that will keep him at Real Madrid until June 2024, the club announced Monday.
The Croatia international, 37, joined Madrid in 2012 and has won 23 trophies in 11 years at the Bernabeu.
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Modric had said both publicly and privately that he wanted to stay at Madrid, although strong interest from Saudi Arabia in recent weeks had raised some doubts over his future.
The midfielder faces more competition than ever for his place in the Madrid starting XI, with Toni Kroos, Jude Bellingham, Eduardo Camavinga, Aurelien Tchouameni, Federico Valverde and Dani Ceballos all set to compete with Modric for a starting spot next season.
Modric made 33 LaLiga and 10 Champions League appearances last season -- he started all six of Madrid's knockout-round matches in their run to the semifinals.
Madrid boss Carlo Ancelotti has said that senior players Modric and Kroos will play fewer minutes next campaign, with an increased role for youngsters Tchouameni, Camavinga and now Bellingham.
Modric overcame early doubts after his arrival from Tottenham in 2012 to become one of Madrid's most important players over the past decade, playing a key role in their five Champions League wins in 2014, 2016, 2017, 2018 and 2022.
Only Marcelo and Karim Benzema have won more than Modric's 23 trophies in the club's history.