Veteran midfielder Luka Modric has signed a new one-year deal to remain at Real Madrid.
The Croatian, 35, will stay with the Spanish giants until the summer of 2022, completing a decade of service for Los Blancos.
Modric was set to become a free agent at the end of June but has now agreed on new terms at Real, who have just finished second in La Liga behind city rivals Atletico Madrid.
He moved to the Bernabeu from Premier League side Tottenham Hotspur for £30 million in 2012 and has now made nearly 400 appearances in all competitions, scoring 28 goals.
During his ime in Spain, Modric has won four Champions League, two La Ligas, one Copa del Rey and three Fifa Club World Cups.
While Modic's future is now secured, it remains to be seen whether manager Zinedine Zidane will still be in charge at the start of next season.
Reports that Zidane, who failed to win a trophy this season, had already told Real players that he would be leaving were shot down by the Frenchman.
"How am I going to tell my players that I am going now? It's a lie," he said after Real's 1-0 win at Athletic Bilbao on May 16.
"I focus on this season. There is a game left and we are going to give everything. I only care what happens in this finale. The rest, we will see at the end of the season."
Real 2 Villarreal 1: player ratings
Real won their final game of the season at home to Villarreal on Saturday to finish two points behind champions Atletico in the title race but five clear of arch-rivals Barcelona in third.
France attacker Karim Benzema remains convinced that the man who has led the club to three Champions League wins, two La Ligas, one Uefa Super Cup and two Fifa Club World Cups, is not going anywhere.
"He's been the Real Madrid coach until now, right?" Benzema told L'Equipe. "I don't see him leaving. He won't leave, you'll see.
"If he leaves, he leaves ... but for now I don't see Real Madrid without Zidane.
"He's my coach, but he's like an older brother. He's always supported me, whether I'm doing well or not, and he's helped me to get better every year."
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
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