Ansu Fati, who has recently returned after almost a year out with a knee injury, will have a release clause in his new deal set at one billion euros.
"FC Barcelona and the player Ansu Fati have reached an agreement to renew his contract until 30th June 2027. The buy-out clause is set at 1 billion euros," a club statement read.
Fati, along with Spanish midfielder Pedri, is widely regarded as the most exciting talent in an emerging group of Barcelona youngsters.
The club's statement described Fati as "currently one of football's hottest properties" and "one of the squad's players with the brightest future".
After losing Lionel Messi to Paris Saint-Germain in the summer, the 18-year-old has taken the Argentinian's iconic number 10 shirt at Barca and his return from injury has lifted the mood in recent weeks.
