Torres has been Atletico's top-scorer for the last four seasons

The Spain international, 22, had been tracked by a host of clubs over the summer, including Manchester United, and his new deal will run until 2009.

"I had two years left on my contract. After all the uproar this summer I am still here and the club have offered me another year," said Torres.

"I am delighted because I feel valued at the club and this is further proof."

Torres came up though the youth ranks at Atletico and has been their leading scorer in each of the last four seasons.

That domestic record and some eye-catching performances for Spain, not least at the World Cup finals, attracted interest from several of Europe's biggest clubs.

But Atletico were always keen to keep their talisman at the Vicente Calderon.