The new deal will keep Neymar at the Camp Nou until the summer of 2021 and includes a buy-out clause for the last three years of the deal set at £210million.
Neymar had two years left on his previous deal with Barcelona.
Reports in the Spanish media on Thursday suggested that Manchester United were launching a move to sign him.
Neymar tweeted his happiness on Thursday night: “Very happy to continue living that dream! Long live Barca! Long live Catalonia!”
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Being an amiable guy is good for you and Jurgen Klopp is living proof.
Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.