Adrian Mutu has agreed terms over a new four-year contract with Fiorentina.
According to reports, Schalke had been prepared to break the bank to tempt the 29-year-old to move to Germany.
There was also talk of a rift between Fiorentina and Mutu, with the player said to be unhappy with his salary.
But all speculation about his future has now been dispelled by the news he will stay in Florence for the next four years.
A statement on the club's official website, acffiorentina.it, confirmed the contract extension with a slight increase in wages and the prospect of performance-related bonuses.