Manchester United and Manchester City's hopes of signing Ross Barkley in the ongoing transfer window has hit a dead end after the youngster penned a new contract with Everton.

Earlier, reports suggested that both Manchester rivals were keen to prise away the upcoming midfielder from Goodison Park this summer. But the 20-year-old committed his future to the Merseyside club by agreeing a four-year deal, reportedly worth £65,000-a-week.

The statement on Everton's official website read, "Ross Barkley has committed his long-term future to Everton by signing a new contract at Goodison Park. The 20-year-old midfielder has put pen-to-paper on a new four-year agreement, meaning he will remain with the Club until at least the end of the 2017/18 season."

Barkley starred for the Toffees last campaign that sealed his place in Roy Hodgson's Three Lions' squad for the World Cup. He played in 34 Premier League fixtures as Everton side finished fifth in the league table.

The England international, who has drawn comparisons to Liverpool hero Steven Gerrard and Chelsea star Frank Lampard, gleamed with delight at extending the deal with his boyhood club by two more years.

"As soon as I got told about it, I knew I was going to sign. It means everything, signing the new contract. It is a dream to have been playing for Everton all my life and today is a great thing for me," Barkley told Everton's official website.

"I am settled in at Everton, this is the Club I love. I see it as my home, I never think of anything away from Goodison. Putting pen-to-paper is great and now I want to focus on doing everything right on the pitch and that will hopefully lead to bigger and better things here," he concluded.

Everton manager Roberto Martinez had only words of praise for his star midfielder hailing him as the best in the world.

The 41-year-old said, "In terms of finding another player of that quality, talent and potential, you will find it very difficult to find someone in world football.

"I don't think you can see many players with the strength and the technique he brings; it is rare as a footballer.

"For me the most impressive aspect is his personality, he has such a humble way of coping with the fame and success he has accumulated. It is very significant because to have that stability and focus ahead of the season is very exciting."

"It is a massive football statement and a clear example for the players in the younger development groups who have a dream of playing first team football. I hope the fans are proud, excited and that they can show that warmth to Ross when they see him in action," the former Wigan Athletic manager concluded.