Football News: Ousmane Dembele ends speculation as he re-signs with Barcelona

The 25-year-old Dembele was at the centre of a contract dispute with Barcelona last season and appeared to be on the verge of finding a new team after new terms were not reached at the Camp Nou.

Chelsea had been interested in the France international, but he just extended his contract with Barcelona until 2024.

According to the club's announcement, Barcelona has re-signed Ousmane Dembele on a two-year deal that will keep him at Camp Nou through 2024.

It has now been made official that the winger's agency and the Catalan club have reached a deal to extend the player's stay.

After his previous contract with Barcelona expired on June 30, Dembele became an unrestricted free agent.

However, Xavi continued to view the France international as a crucial player and prevailed upon the club's leadership to sign him to new terms.

Thomas Tuchel had previously collaborated with the winger at Borussia Dortmund. Therefore, it was claimed that Chelsea was among those interested in signing him. However, Dembele wasn't their top priority, and when the Blues signed Raheem Sterling for Manchester City, their interest in Dembele waned.

While there was strong interest from German powerhouse Bayern Munich, who is in danger of losing top scorer Robert Lewandowski to Barcelona, Dembele was also ready to join Paris Saint-Germain.

Ousmane Dembele extends stay at Barcelona

Dembele has extended his contract with Barcelona for a further two years, with an expiration date of June 30, 2024.

The forward reportedly agreed to a significant compensation cut resulting in a 40% pay drop.

However, factors based on his participation and performance in the following two seasons have also been considered. If he successfully checks off every box, he will be paid about €10 million annually.

After being initially booed by fans upon his return, Dembele, 25, played a significant role in Barca's ascent from ninth to second in LaLiga, finishing the season with a league-high 13 assists.

According to sources at Barcelona, the club's pursuit of Leeds United's Raphinha would not be affected by the club's decision to renew Dembele, who cost €105 million when he was acquired from Borussia Dortmund in 2017.

Any new players joining Camp Nou are still contingent on Barcelona selling an additional 15% of their domestic broadcast rights. To cover losses over the 2021–22 campaign, they sold 10% to the international investment group Sixth Street on Thursday for more than €200 million.

In a transaction worth up to £55 million ($65.2 million), Barcelona also improved their forward line from the previous campaign by adding Raphinha from Leeds United. Raphinha had also discussed a potential move to west London with Chelsea.

Xavi once forced Dembele to leave the Barcelona squad due to a contract dispute. However, he made a comeback in February and went on to have a fantastic campaign, recording 11 assists and one goal in his final 15 La Liga games.

Since coming to Barcelona from Borussia Dortmund in 2017, Dembele has participated in 150 games, scoring 32 goals and assisting 34 others.

In addition to Raphinha, Andreas Christensen, Franck Kessie, and Pablo Torre, Barcelona has already been busy in the transfer market. Pablo Torre joined the team after leaving Racing Santander.