"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.