Chelsea, United and Arsenal  miss out on Alcantara as Barca ace signs new deal

Arsenal, Chelsea and Manchester United have been dealt a blow in their pursuit of promising Barcelona midfielder Thiago Alcantara, after the Under 21 star signed a two-year contract extension which ties him to his club until 2015.

The Premier League big guns have both been preparing bids for the 20-year-old, but his performances at the European Under 21 Championships have substantially raised his stock.

Wanted man: Manchester United, Chelsea and Arsenal were keen on Thiago Alcantara (left) 

Barcelona were considering using Alcantara as bait in their dogged chase for Gunners captain Cesc Fabregas yet they've completed a U-turn and tied the youngster down.

As part of the new deal, the gifted central midfielder has had an enormous buyout clause inserted into his contract worth £80m.

Thiago scored an audacious 50-yard free kick in last weekend's 2-0 victory over Switzerland to clinch the Under 21 crown.

Party time: Thiago (right) celebrates Spain's Under 21 title triumph