According to The Sun, Dybala is close to signing a new five-year deal with Juventus, worth £120,000-a-week.
The 24-year-old was reportedly hit with a wake-up call after his form forced him to the bench this season.
This caused Dybala to reassess his motivation for a move to Spain and England, and he has instead chosen to continue refining his craft in Italy.
His new deal runs until 2023 and does not include a release clause.
Dybala is now alongside striker Gonzalo Higuain as one of the Bianconeri's highest earners.
The Argentine started his first match in nearly two months against Lazio over the weekend. Recapturing some of his early season form, in which he netted 13 goals in his first eight matches, the diminutive forward scored the winning goal in the dying seconds of the match.