Chelsea target Michael Olise has signed a new four-year contract with Crystal Palace.
Crystal Palace chairman Steve Parish confirmed Olise had committed to a new four-year contract at Palace.
The news comes a day after it was claimed Chelsea had activated a £35million release clause in Olise's Palace contract.
It had been widely reported that Chelsea were expected to sign the 22-year-old in the coming days, with the player reportedly having come to an agreement with the Blues.
Olise is currently sidelines having torn his hamstring at the European Under-21 Championship, which could reportedly prevent him from playing until the end of September.
In a tweet Parish said: "I’m absolutely delighted to announce @m.olise has decided to commit his future to Crystal Palace football club and this afternoon signed a new four year deal with the club.
"@m.olise is an [Eagle.]"
Olise potential departure would have been critical for Palace's season, with the club having lost their talisman Wilfried Zaha earlier in the summer, with the Ivory Coast international having opted to join Galatasaray on a free transfer in pursuit of Champions League football over extending his time at Palace.
Speaking last week on the eve of the new Premier League season, Roy Hodgson admitted he was unsure whether Olise would remain at the club this summer adding that the forward's future is "totally out of my hands".
Treble winners Manchester City were also said to have been interested in Olise, who was involved in 13 Premier League goals last season after providing 11 assists and netting twice.
Olise's form last term saw him win the Palace players' Player of the Season award.
When asked about Olise future earlier this month Hodgson told Sky Sports News: "No one knows really at this moment in time.
"If there are clubs who are desperately or seriously preparing a bid and tempting him away then he'll have a decision to make.
"I can only wait and see if there are clubs who are going to come in and make those bids and tempt him away, and in that situation what decision is he going to make, because he also knows that we are really very keen to keep him here.
"We really believe this is a good place for him and that we can provide him with a very good platform to go forward in his career.
"But unfortunately these matters are totally out of my hands - everything will depend I suppose on what happens in the future.
"You can never be certain as a manager that the players you've got, you like and you want are always definitely going to stay because we have a transfer market.
"I can only hope that transfer market doesn't on this occasion punish us by persuading one of our very, very important key players to move."
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