The attacker has penned terms to 2016.
"It was always clear, at no time did I want to leave Valencia," Feghouli said.
"They're one of the best clubs in the world. This league fits perfectly with my style, and I have everything I need to grow here in Valencia.
"There was interest from other clubs, but my concern has always been to make it work with Valencia. I go on to the field, and the rest, I leave to my agent."