Marco Asensio has signed a new deal at Real Madrid with a release clause said to be worth €700m (£613.7m, $824,5m), following reports the likes of Barcelona and Liverpool tried to lure him away from the Santiago Bernabeu during the summer transfer window.

The 21-year-old talent was recruited by Los Blancos from Mallorca in December 2014 as a prospect for the future.

Barcelona also tried to sign him but Real Madrid won the race after the Catalans refused to pay his full €4.5m release clause up front.

Asensio remained at Mallorca on loan for the second part of the 2014-15 campaign before being dispatched to Espanyol in the 2015-16 campaign to enjoy his first exposure to the top flight.

Real Madrid were expected to send him on loan one more time, but Zinedine Zidena opted instead to keep him in his ranks for the player to continue his development alongside Cristiano Ronaldo and co.

Asensio began last campaign as a back-up but eventually proved himself to be one of the revelations of the season, scoring 10 goals in 38 appearances, including one in the Champions League final 4-1 victory over Juventus.

Earlier in the summer Diario AS and Cadena Cope reported that Real Madrid were thus forced to turn down an approach from Liverpool to secure his services – with Jurgen Klopp being ready to pay around €50m to lure him to Anfield.

Later it emerged that Barcelona also enquired whether Asensio would be willing to make the shock move to the Nou Camp after they lost Neymar to Paris Saint-Germain.

Cope said that the Catalans and another unnamed club were prepared to break the bank and pay up to €150m to lure him away from Real Madrid.

Asensio himself refused to deny that offer earlier this month when asked by Cope whether he was aware of the Barcelona interest.

"I know there were some clubs interested but... yeah. There was some clubs interested but from the very first moment my idea was to stay here because I'm happy here. These things are dealt with by [my agent] Horacio [Gaggioli]," the Spanish international said.

Asensio made it clear that his intention was to stay at Real Madrid and has now decided to commit his long-term future to the club by putting pen to paper on a new deal until 2023.

"Real Madrid CF and Asensio have agreed an extension to the player's contract, binding him to the club until the 30th of June 2023," the club confirmed.

"Tomorrow, Friday, at 2:00pm CEST, Asensio will appear at a press conference in the media room at the Santiago Bernabéu."

AS claims that Los Blancos have agreed to insert a €700m release clause in the contract to end the speculations ahead of the future. It is understood to also include a lucrative pay rise for the player.

Asensio follows in the footsteps of Raphael Varane, Karim Benzema, Marcos Llorente, Isco, Dani Carvajal and Marcelo, who have all inked new contracts in recent days.