Chelsea told £20M for Lulinha
"We have renewed the contract with him up to December 31, 2012," confirmed president Andres Sanchez.
The player himself admitted he was more than happy to remain with Corinthians.
"In 2012 I will be just 22-years-old, and that is not a high age really," he told Gazeta Esportiva.
"I have always spoken about fulfilling my contract with Corinthians and I have the same thoughts now."
Sanchez also revealed that any club wanting to sign Lulinha would have to pay the price of nearly £20million which could put off Chelsea who were believed to be considering bidding closer to £5million.