Alphonso Davies has agreed a new contract at Bayern Munich, the Bundesliga club announced on Tuesday, bringing an end to Real Madrid's long-term pursuit of the player.

Davies' deal with the Bavarian giants runs through the end of the 2029-30 season and would see his stay there reach 11 years should he play out the contract.

"I am very happy to have extended my contract at this great club," Davies said in a news release.

"I came to FC Bayern when I was 18 and just wanted to learn as much as possible every day to become one of the best in my position. Now I'm looking forward to another five years together. I've already achieved a lot here, but there's more to come."

ESPN reported last summer that Madrid wanted to sign Canada international Davies, 24 -- whose previous deal was due to expire in June 2025 -- if an agreement on a fee could be reached with Bayern.

When that move did not materialise, Madrid remained keen on bringing in Davies on a free transfer this summer as part of an overhaul of the defence that they also hope will see the arrival of Trent Alexander-Arnold, whose Liverpool contract also expires at the end of the season.

However, Bayern continued to push for Davies to stay, offering the player an improved renewal.

"Alphonso Davies has become one of the best players in the world in his position at Bayern and has attracted a lot of interest," the German club's sporting director Christoph Freund said.

"The fact he wants to continue here with us shows Bayern's status in international football and that Alphonso has found his sporting home in Munich."

Davies was still considering his options last month, a source told ESPN, before eventually opting to stay with the German side.

Davies has made 16 appearances for Bayern in the Bundesliga this season under coach Vincent Kompany, scoring once as the team sit top of the league table.

He joined Bayern from Vancouver Whitecaps in 2019 and has since become one of the most highly rated left-sided players in world football.

Madrid have been looking to improve their options at left-back, with doubts over their two existing options, Ferland Mendy and Fran García.

The LaLiga giants have made a habit of signing elite players on free transfers in recent seasons, including Kylian Mbappé in 2024, Antonio Rüdiger in 2022 and David Alaba in 2021.