The new deal will keep the 20-year-old at Camp Nou until the summer of 2015.
“It’s a dream to continue with this team and this club. I am really happy. Now It’s time to share it with my family. I never thought about leaving. I’ve always wanted to be here,” Alcantara said on Barcelona’s official website.
“The club has already done everything for me. They’ve trained me, I’ve come up through the youth ranks, they trusted me to play last season in the first team, and they offered to renew my contract. Now it’s up to me to prove that I can play for Barcelona and help the team to stay at the top.”